Gold News

Gold & Silver End Monday 2% Higher as Stocks Rally, T-Bonds Fall on New Record US Deficit

From Chris Mullen at

The Gold Price fell a few dollars in Asian dealing on Monday, and traded near unchanged in London before it climbed steadily higher throughout trade in New York.

Ending near its late session high of $1105.90 with a gain of 2.0% vs. the Dollar, the Gold Price in Euros rose to about €793 an ounce.

Silver followed a similar pattern and ended near its late session high of $16.655 with a gain of 2.5%.

Platinum gained $33 to $1542, and copper gained a few cents to about $3.08.

Gold Mining and silver equities rose throughout most of the day and ended with over 5% gains.

Oil rose on hopes for rising demand due to cold weather and also on worries over supply disruptions after a pipeline attack in Nigeria.

The US Dollar index fell after stronger-than-expected data from the Eurozone's Purchasing Managers Index pushed the single currency higher.

Treasury bonds fell after President Obama unveiled a $3.83 trillion federal budget for 2010, requiring a new record deficit of $1.53 trillion.

The Dow, Nasdaq, and S&P stock indices rose more than 1% despite mixed economic data in the US, where Personal Income for Dec. showed a 0.4% rise, beating expectations, but Personal Spending rose much slower than analysts forecast.

New Construction Spending fell by 1.2%, rather than the 0.5% expected. The Institute of Supply Management's manufacturing index rose to its best level since Aug. 2004, sparking a late bounce in the US Dollar.

Tuesday at 10:00 EST brings the Pending US Home Sales report for Dec., expected higher by 1.1%.

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Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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