Gold Slips with Stocks & Oil, Silver Sinks, as Dollar Rallies & Interest Rates Rise
From Chris Mullen at GoldSeek.com...
Gold remained near unchanged in Asia and London on Monday before it rose to see a gain of $4.30 as high as $1059.55 an ounce a little after 10:00 EST in New York.
Gold priced in Dollars then fell back off for the rest of trade, and ended near its low of $1040.20 with a loss of 1.3%.
The Gold Price in Euros fell to €701 an ounce.
Oil fell after the US Dollar index turned markedly higher but US government bonds fell as interest rates rose on worries over the Treasury's ability to sell a huge amount of debt this week.
News that ING bank needs to split itself and issue $11.3bn of shares also reignited worries over a repeat of last year’s credit crisis.
The Dow, Nasdaq, and S&P reversed early gains and turned noticeably lower in reaction to the rebounding Dollar and rising interest rates.
Silver followed a similar pattern to Gold, falling off in the last few hours of trade and ending near its low of $17.00 with a loss of 3.3%.
Platinum lost $24 to $1331, and copper fell a couple of cents to about $3.00.
Gold Mining and silver equities rose over 1% at the open, but they then fell back off for most of the rest of the day and ended with about 4% losses.
There were no major US economic reports today. Tuesday at 08:30 EST brings Durable Goods Orders for September, expected up 1.0%. Excluding transportation, orders are expected 0.7% higher.
At 09:00 EST comes US Consumer Confidence for October, expected to read 53.5, and the Case-Shiller Home Price Index for August, expected down 11.9% year-on-year.
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