On news world governments were to buy bank stakes, stocks soared 11% on Monday, marking their first rise in nine sessions and setting various new records. The luster in stocks made ill for gold. The yellow metal faltered for the third session, dropping 1.9 percent compared to platinum’s 0.8 percent fall. Silver shined with a 1.8 percent rise.
November crude rose $3.49 to settle at $81.19 per barrel. MarketWatch reports that Goldman Sachs has cut oil forecasts to $70 a barrel from $115 by year-end.
December silver made 19 cents to close at $10.79 an ounce.
January platinum fell $7.60 to end at $997.60 an ounce.
Gold for December dropped $16.50 to close at $842.50 an ounce.
"Sometime last week it seemed like we faced Armageddon, so to have a coordinated plan on stabilizing banks is huge progress," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
"The price movement of gold demonstrates how quickly demand for a safe haven could fade," said Peter Fertig, analyst at Dresdner Kleinwort.
Gold typically follows oil’s direction and moves opposite to the U.S. dollar, as a weakened dollar encourages investors to buy gold, also considered a hedge or safe-haven during times of high inflation and economic uncertainty.
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