Gold News

Gold Ends Tues $18 Higher at New Record Highs as US Stock Market Sinks

From Chris Mullen at GoldSeek.com...

Gold Prices rose $15 in Asia on Tuesday, held near $875 per ounce in London and then rose even further by midday in New York to hit record highs above $881 before falling back off slightly in the last hour of trade.

The spot Gold Market still ended with a gain of 2.12% for the day at a new all-time high, while silver added 3.43% to reach its highest level since 1980.

The Gold Price in Euros climbed above €596, platinum gained $26 to $1547 to a new record high, palladium gained $5 to $375, and copper rose roughly 17 cents to $3.28.

Gold and silver mining equities rose over 5% in the first hour of US trade before they were dragged down as the major stock indices plunged, but they still ended with about 4% gains, just slightly below their all-time highs set two months ago on November 6th.

The Dow, Nasdaq, and S&P fell markedly on rumors of Countrywide – the largest US mortgage lender – facing possible bankruptcy. AT&T noted consumer softness and furthered concerns about the economy, worsened by a 2.6% drop in Pending US Home Sales reported for November vs. the 0.8% fall expected.

Consumer credit, however, leapt by $15.4bn, but that news failed to stop tech-stocks falling for the eighth straight running. The Dow ended the session more than 5% lower for the year so far.

There are no major economic reports due out tomorrow, but crude oil prices rose over 1% on Tuesday as traders prepared for perhaps the eighth weekly drop running in US inventories, due for release Wednesday. Geopolitical concerns mounted on tensions in Nigeria, Kenya and Pakistan.

The US Dollar index fell slightly after the worse-than-forecast Pending Home Sales data, but US Treasury bonds actually fell as the current negative yields after accounting for inflation failed to attract few buyers.

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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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