Gold News

Gold Down, Silver Up to New 30-Month High, as Stocks Rise on "Tame" Banking Reforms

From Chris Mullen at

The Gold Price saw a modest gain at $1248.00 in Asia on Monday, before it fell back off in London, dropping as low as $1240.92 by the New York start.

Gold Prices then rose to a new session high of $1248.88 in midmorning New York trade, but chopped back lower into the close and ended with a gain of just 0.1%.

The Gold Price in Euros fell to about €967.

The Silver Price soared as high as $20.21 by about 10:30 ET, before it also fell back off a bit in the last few hours of trade, but still ended at a new 30-month high with a gain of 1.5%.

Platinum gained $6 to $1543, and copper rose over 7 cents to about $3.47.

Gold Mining and silver equities waffled near unchanged and ended mixed.

Oil rose on continued supply problems and raised demand expectations after signs of good growth in China.

The US Dollar index fell after Monday's lax bank reform changes out of the Basel summit encouraged market participants to put cash to work. Banks have eight years to apply the new rules.

Treasuries rose after the Federal Reserve bought $3.4 billion of US government bonds as part of its program to reinvest the money paid by maturing mortgage bonds it already holds.

The Dow, Nasdaq, and S&P rose on the tame banking reforms, plus indications of good economic growth from China.

August's US Treasury Budget Deficit was smaller than forecast – and down from July's $103.6 billion – at $90.5bn.

Tuesday at 08:30 ET brings US Retail Sales for August, expected up 0.3%, both with and excluding auto sales.

Then at 10:00 comes the Business Inventories report for July, expected up 0.7%.

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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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