Gold News

Gold Falls as Stocks Sink Again; Dollar Jumps on Global Recession

From Chris Mullen at

Gold Prices rose nearly 2% to over $800 in Asia on Tuesday, but then fell back off for most of the rest of trade and ended near the day's low at $765.30 with a loss of 2.7%.

Silver briefly spiked lower at the New York open to see a 23 cents loss at $9.53, but it then rallied back higher into the close and ended near its high of $10.188 with a gain of 3.2%.

The Gold Price in Euros fell to about €586, platinum lost $3.50 to $877, and copper fell over 11 cents to about $2.00.

Gold and silver equities fell nearly 7% in the first half hour of trade before they rebounded to see less than 4% losses by midmorning, but they then fell back off to new lows with the major indices in late trade and ended with over 9% losses.

There were no major US economic reports, but the Federal Reserve announced it will provide up to $540 billion in loans to ease pressures on money-market mutual funds, now suffering sharp withdrawals by investors.

Oil fell on more worries of waning world demand. The US Dollar index rose again on the belief that the rest of the world is worse off than the United States – a position confirmed by Mervyn King of the Bank of England in a speech overnight, in which he said the UK is now in what may prove a deep and long-lasting recession.

Treasuries rose as the Dow and S&P fell on worries over disappointing earnings reports. The tech-stock Nasdaq lost more than 4%.

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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