Gold & Silver Erase Monday's Gains as Stocks Bounce on New Bail-Out Hopes
From Chris Mullen at GoldSeek.com...
Gold Bullion and silver erased Monday night’s gains by midday in London on Tuesday, falling further in New York and ending near their lows of the session with losses of 1.44% and 5.83% respectively.
Both metals fell another 1% after the Wall Street close, but then rebounded near unchanged at the time of writing.
The Gold Price in Euros rose roughly €4 to about €622 on substantial Euro weakness in the currency market. Platinum lost $77.50 to $1004, and copper fell another few cents to about $2.89.
The US Dollar index rose markedly and Treasuries fell as the Dow, Nasdaq, and S&P rose sharply on optimism. All three indices gained back roughly half of the historic losses suffered Monday.
Crude oil retraced almost half of Monday’s 10% losses despite the higher Dollar, as energy followed US stocks higher on hopes that a new bail-out plan will pass and help underpin demand.
Gold Mining and silver equities fell over 2% by mid-morning in New York before they rebounded and saw slight gains by early afternoon. But they then fell back off into the close and ended with about 2% losses.
The Chicago PMI and Consumer Confidence indexes both came in much higher than expected for Sept. But also making economic news was the Standard & Poor's/Case-Shiller 20-city housing index, which showed a record 16.3% plunge in July from a year earlier.
The 10-city index plunged 17.5%, the biggest decline in its 21-year history.
Wednesday at 08:15 EST brings the private-sector ADP payroll report for Sept., expected down 53,000. Then US Construction Spending for August will be followed by the ISM Index for Sept., expected to show contraction at 49.5.