Gold News

Gold & Silver Recover Sharp Losses as Dollar-Rally Fades on Weak US Data

From Chris Mullen at

Gold fell as much as $17.95 to $1352.50 per ounce in Asia on Monday, but it then rallied back higher for most of New York trade and ended near its late morning high of $1372.75 with a gain of 0.1% on the day.

The Gold Price in Euros climbed above €980 an ounce.

Silver fell as low as $23.73 per ounce in Asia, but it also rallied back higher for most of the rest of trade and ended near its noon-time high of $24.458 with a gain of 0.5%.

Platinum gained $2 to $1689.50, and copper climbed a couple of cents to about $3.85.

Gold Mining and silver equities fell over 1% at the open before they rallied back to about unchanged by midmorning, but they then fell back off a bit midday and ended with modest losses. Oil rose on strikes in France by refinery and port workers that forced the country to tap emergency reserves.

The US Dollar index saw impressive gains in overseas action, but it then erased its entire advance in US trading and ended with a loss in reaction to poor Industrial Production data.

US industrial output fell 0.2% month-on-month in Sept., with Capacity Utilization falling to 74.7%.

Long-term flows of money into US assets reached $38.9 billion in August, other data showed, down from July's $63.3bn.

Treasury bonds rose, as did the Dow, Nasdaq, and S&P stock indices, with a strong earnings report from Citigroup pushing financial stocks higher.

Tuesday at 08:30 EST brings US Building Permits for September, expected at 565,000, and Housing Starts expected at 579,000.

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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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