Gold News

Gold Ends Monday Higher as US Treasury Sells Bonds at Record Low Yield

From Chris Mullen at

Spot Gold rose $12.15 to $848.10 in early Asian trade on Monday, dropped back to $839.15 in London, and then rose to a new session high of $851.22 in New York trade.

The Gold Price then fell back off slightly into the close, but it still ended with a gain of 1.24%.

Silver climbed to $11.06 in Asia before it fell back off in London and New York and dropped as low as $10.71 by about noon EST. Silver then rallied back higher in the last hour and a half of trade, but ended as good as unchanged with a gain of 0.18%.

The Gold Price in Euros rose to about €607, platinum gained $3.50 to $848, and copper rose slightly to about $1.33.

Gold and silver equities rose over 4% at the open, but they then fell back off for most of the rest of trade and ended about 2% lower on the day.

Crude oil rose in early trade on speculation over more Opec production cuts, but it fell back off almost 6% by the close on fresh demand worries as new data showed oil consumption in China falling by 3.2% in November from a year ago.

Crude imports into the world's No. 2 energy consumer dropped to the lowest level this year.

The US Dollar index ended barely higher as the Yen weakened after the Bank of Japan warned on a prolonged recession in the world's second largest single economy.

Treasuries rose as a new auction of two-year notes attracted the lowest yield ever at 0.922%, but they ended slightly lower – perhaps because in the secondary market, few buyers willing to find such yields attractive.

US stocks fell on continued economic worries spurred by more disappointing company reports, dragging the S&P more than 1.8% lower.

There were no major US economic reports Monday. Tuesday at 13:30 GMT brings third quarter GDP (expected down 0.5%) and the Chain Deflator (expected up at 4.7%).

At 15:00 GMT comes New US Home Sales data for Nov., expected at 420,000, with Existing Home Sales expected at 4,930,000 annualized. Michigan Sentiment for December is expected better at 58.6.

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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