Gold News

Gold & Silver Add 0.4% as Stocks & Bonds Wobble Ahead of Fed Rate Decision

From Chris Mullen at

Gold rose $6.60 to $1108.30 in London on Monday, before it fell to see a slight loss by late morning trade in New York.

The Gold Price then rallied back higher in the last couple of hours of trade, and ended with a gain of 0.4% on the day.

The Gold Price in Euros recovered to €809 an ounce.

Oil fell back below $80 a barrel as the US Dollar index rose after the Euro dropped on renewed concerns over the resolution of Greece's debt problems.

Treasuries fell along with the Dow, Nasdaq, and S&P for most of trade on concerns over Tuesday's Federal Reserve meeting and a potential downgrade to the credit rating of the US – mooted by Moody's, who also warned on the UK's triple-A status – but stocks climbed back higher in the last hour of trade and ended near unchanged on hopes for improving economic conditions.

Treasury data showed the People's Bank of China reduced its holding of US debt again in January, helping force a net capital outflow from the United States.

Silver dropped 7 cents to $16.93 in London and rose almost 1% to $17.14 by late morning in New York. Silver prices then also fell back off into the close, also ending with a gain of 0.4%.

Platinum climbed to $1615, and copper fell over 6 cents to about $3.31.

Gold Mining and silver equities fell over 1% by midday before they rallied back higher in afternoon trade, but they still ended with slight losses on the day.

US Industrial Production meantime showed a 0.1% rise for Feb. from Jan., while Capacity Utilization ticked higher to 72.7%.

Tuesday at 08:30 EST brings US Export and Import Prices for February, Building Permits for February (expected at 601,000), and Housing Starts expected at 570,000.

At 14:15 EST comes the Federal Reserve interest-rate decision.

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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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