Gold News

Gold Prices End Monday 0.7% Higher as Oil Jumps on Tight Supply

From Chris Mullen at GoldSeek.com...

Gold Prices rose more than $5 in Asia on Monday before falling back near unchanged at $887.00 early in New York.

The Gold Market then rose mid-morning to as high as $895.70, remained near that high into the close, and ended with a gain of 0.69%.

Silver dropped to $16.77 and rose to $17.14 before it closed with a gain of 1.16%.

The Gold Price in Euros rose to about €571, platinum gained $12.50 to $1964.50, and copper rose a couple of cents to about $3.98.

Gold and silver equities rose about 1% by late morning, but they then steadily fell back off for most of the rest of trade and ended with about 1% losses.

Oil rose on the Scottish refinery strike and an Exxon union strike in Nigeria that kept supply concerns high and drove oil to close within just 62 cents of a new record closing high.

A new intraday high of $119.93 per barrel was achieved in overnight electronic trading.

The US Dollar index fell slightly and Treasury bonds rose slightly while traders waited and prepared for the Fed's statement on Wednesday.

The Dow, Nasdaq, and S&P rose modestly in early trade on deal making news and decent earnings reports, but uncertainty over the fed’s meeting dragged the Dow and S&P marginally lower by the close while the Nasdaq eked out a small gain.

There were no major economic releases, but a private-sector report showed US homeowner vacancies have hit a new record high. Warren Buffet, the legendary "value investor" commented that the recession may be worse than most fear.

Tuesday at 15:00 GMT brings US Consumer Confidence for April, expected at 61.0. The Federal Reserve also start their meeting, expected to end with a 0.25% cut to US rates but also a hint of no further cuts for the time being.

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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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