New York silver, gold and platinum futures dropped Monday, as the U.S. stock market and the dollar soared after the government’s takeover over of Fannie Mae and Freddie Mac.
October oil climbed 11 cents to $106.34 per barrel in the wake of concern about the possibility that Hurricane Ike could disrupt oil in the Gulf.
December silver slid 2.5 percent to end at $12.06 an ounce.
October platinum moved lower 1.1 percent to $1,352.90 an ounce.
December gold fell 30 cents to close to $802.50 an ounce.
"The End Of The World As We Know It” mega-event that so many had long feared and had geared up for, took place over the weekend. The biggest ever rescue of a financial entity was carried out by the US government. “Frannie” has now been put into conservatorship," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"If ever there was a Monday to wake up to or expect four-digit gold prices, today would have been that day. A scenario that had been prophesized as the ultimate ‘prefect storm’ for the safe-haven that gold can be in such conditions, resulted in prices barely edging up to the same resistance level at which they stalled last week," continued Nadler.
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.