Gold News

Gold & Silver Bounce as Dollar Falls on Russian Call for New Reserve Currency

From Chris Mullen at GoldSeek.com...

Gold and silver saw slight gains in Asia on Tuesday and rose over 1% in London as high as $939.05 and $14.40 per ounce a little after 08:00 in New York.

Both silver and Gold Prices then pared their gains, but gold still ended with a gain of 0.5% on the day while silver closed with a gain of 0.4%.

The Gold Price in Euros remained at €673 an ounce.

Gold Mining and silver equities rose more than 2% by late morning in the US, before they fell back to see slight losses at midday. They then rallied back higher in the last couple of hours of trade and ended with almost 1% gains.

Platinum gained $10.50 to $1215.50, and copper fell a few cents to about $2.25.

Oil rose for most of trade but ended slightly lower as a weak stock market overcame a falling Dollar, which dropped after Russian president Dmitry Medvedev expanded upon his finance minister's comments of yesterday by saying that the world needs new reserve currencies to replace the Dollar.

Treasuries rose as the Dow, Nasdaq, and S&P erased early gains and fell for most of the afternoon to end with over 1% losses as decent economic data was not enough to overcome recently renewed economic worries.

US Housing Starts and Building Permits were stronger than expected in May, but Capacity Utilization across the economy was weak at 68.3%. Industrial Production fell more than forecast, down 1.1%, while Producer Prices rose 0.2% month-on-month.

Wedbesday at 13:30 BST brings US Consumer price data for May, expected to show 0.3% inflation from April, with Core CPI (excl. fuel and food) expected at 0.1%.

The first quarter US Current Account Balance is forecast to show an $85.0 billion deficit.

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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