Gold & Silver End Monday Higher as Dollar Dumps, Stocks Fall

From Chris Mullen at GoldSeek.com...

Gold rose over $10 to $830 an ounce and above in Asia on Monday before it fell back near unchanged at $820 by the New York opening.

The Gold Price then surged as high as $842.37 by late morning in New York and ended with a gain of 2.05%.

Silver rose to over $10.40 an ounce in Asia before it dropped back to $10.24, but it also soared higher in late morning trade and ended near its high of $10.72 with a gain of 4.31%.

The Gold Price in Euros fell to about €611 on substantial Euro strength in the currency market, platinum gained $14.40 to $828, and copper fell a couple of cents to about $1.39.

Gold Mining and silver equities rose over 6% by late morning before they fell back off a bit in afternoon trade as the major indices dropped again. The miners still ended with over 4% gains as the S&P fell 1.3%.

Oil rose in early trade above $50 a barrel on speculation over substantial production cuts by Opec this week, but it then fell back off by the close and ended back under $45 on persistent worries over falling demand.

The US Dollar meantime plummeted and Treasury bonds rose while the Dow, Nasdaq, and S&P fell on worries over the "big three" automakers as no plan to help them has been decided by the Treasury.

New data showed Net Foreign Purchases of US securities for Oct. at $1.5 billion, markedly below Sept.'s $65.4bn reading.

Capacity utilization fell again for Nov. as industrial production shrank 0.6%.

Confidence amongst US homebuilders held at record lows.

Tuesday at 13:30 GMT brings US Building Permits for November (expected at 700,000) while Housing Starts are expected at 730,000. The Consumer Price Index is forecast to show a 1.3% fall, with Core CPI – excluding fuel and food – rising 0.1%.

Just after lunch comes the Fed Policy Statement, expected to announce a 50 basis point cut in rates to 0.5%.