Gold News

Gold Slips, Silver Gains, as "Risk Aversion" Buys the Yen

From Chris Mullen at GoldSeek.com...

Gold saw slight losses in Asia before it dropped markedly in light European trade, where London was closed for a Bank Holiday.

Dropping as low as $944.50 by the start of US dealing, the Gold Price then climbed higher for most of the rest of trade and ended with a loss of 0.6%.

The Gold Price in Euros fell to €664 an ounce.

Silver fell nearly 2%, down as low as $14.517 by 08:30 EST before it also climbed higher for most of the rest of trade. It then accelerated its gains in the last half-hour of trade, ending with a gain of 0.6% on the day.

Platinum lost $5 to $1235.50, and copper fell over 11 cents to about $2.81.

Gold Mining and silver equities traded roughly 3% lower for most of the morning before they rebounded a bit in afternoon trade, but they still ended with about 2% losses on the day.

Treasuries rose while the Dow, Nasdaq, and S&P fell with crude oil on renewed worries that the global economy is weaker than recent perceptions that have driven world equities markedly higher over the past 6 months.

The US Dollar index reversed early gains and ended lower as traders turned to the Yen as the currency vehicle for risk aversion.

On the data front, the Chicago Purchasing Managers Index came in better than expected for August and sharply ahead of July's figure.

Tuesday at 10:00 EST brings US Construction Spending for July, expected  down 0.2%, plus the ISM Index for August, expected up 50.2.

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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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