Gold News

Gold Gains as Stocks Tumble on Financial Downgrades

From Chris Mullen at GoldSeek.com...

Gold fell nearly 1% to $880.90 by late trade in Asia on Monday, but it then chopped its way higher in London and New York to end near its high of $897.50 with a gain of 0.61% for the session.

The US Dollar index rose in early trade as economic data was not indicative of a serious recession, but it fell to end with only a small gain.

Silver rose over 1% to $17.01 during early trade in London before it fell to end with a gain of 0.12%.

The Gold Price in Euros rose to about €574, platinum remained unchanged at $2006, and copper fell a couple of cents to about $3.61.

Gold and silver equities rose over 1% by early afternoon before they pulled back a bit on notable weakness in the major indices, but the miners still ended with slight gains.

Treasuries rose despite negative – but better than expected – US construction and services data, as the Dow, Nasdaq, and S&P fell throughout trade on worries over more shoes to drop in the financial sector.

Rating agency Standard & Poors made public its rating cuts and outlook downgrades of major US banks.

Oil eventually rose on worries over a busy storm season despite more indications that demand is falling off. Rumors over a US military attack on Iran also brought out buyers.

Tuesday at 15:00 GMT brings the US Factory Orders report for April, expected to show -0.1% contraction.

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Adrian Ash

Adrian Ash, BullionVault Gold News

Adrian Ash is director of research at BullionVault, the world-leading physical gold, silver and platinum market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and he has now been researching and writing daily analysis of precious metals and the wider financial markets for over 20 years. A frequent guest on BBC radio and television, Adrian is regularly quoted by the Financial Times, MarketWatch and many other respected news outlets, and his views from inside the bullion market have been sought by the Economist magazine, CNBC, Bloomberg, Germany's Handelsblatt and FAZ, plus Italy's Il Sole 24 Ore.

See the full archive of Adrian Ash articles on GoldNews.

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