Gold News

Gold Falls 1.6%, Silver Drops 3.8% as Dollar Drops with Treasuries, Stocks Reverse Early Loss

From Chris Mullen at GoldSeek.com...

Gold dropped $15.58 to $891.42 in early Asian trade Tuesday morning, and then rebounded to $900 before it plummeted again to a new low of $884.10 at the open of trade in New York.

The Gold Price then climbed back higher for most of the rest of trade and ended almost 1% off that low with a loss of 1.6% for the session.

Oil fell slightly back under $50 on continued worries that caution surrounding swine flu will discourage travel and reduce energy demand.

The US Dollar index erased early gains and ended noticeably lower along with Treasuries as the Dow, Nasdaq, and S&P rebounded from early losses and ended just slightly lower on a surprisingly large jump in US Consumer Confidence.

The rise in the Euro drove the Gold Price in Euros down to about €680 an ounce.

Silver fell all the way to $12.35 at the open of trade in New York before it bounced back higher a bit, but it still ended with a loss of 3.8%.

Platinum lost $51 to $1087.50, and copper fell another 7 cents to about $1.92.

Gold Mining and silver equities fell over 3% at the open and remained near their lows into the close.

Elsewhere on the data front, the Case-Shiller index of home prices showed an 18.6% drop for Feb. year-on-year.

Wednesday brings first quarter US GDP, expected down 4.9%, and the Chain Deflator expected at 1.7%. At 2:15pm comes the latest Fed FOMC rate decision.

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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