Gold rose Monday following the holiday weekend as silver and platinum charge forward for better gains — the latter hitting a six-month high. Meanwhile in other markets, oil plunged after a five-week advance while U.S. stocks ended mixed.
In New York trading futures for bullion:
Silver for May delivery jumped 44 cents, or 3.6 percent, to $12.77 an ounce.
Gold for June rose $12.50, or 1.4 percent, to $895.80 an ounce.
- July platinum surged $51.70, or 4.3 percent, to $1,247.00 an ounce.
"Look for fresh tries to get bullion back into the $900-$920 range while Indian would-be buyers become sellers instead, once more," wrote Jon Nadler, senior analyst at Kitco Bullion Dealers."On the other side of this mini-mountain, look for slippage under $885 and at tilt towards lower value ranges if the momentum trade vanishes from the scene."
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies.
Oil and gasoline prices
The International Energy Agency cut its forecasts for world oil consumption, showing that 2009 demand may drop to its lowest level in five years. With investors taking notice, crude-oil prices plummeted. Oil lost $2.19, or 4.2 percent, to end at $50.05 a barrel.
In news for consumers, AAA said the average prices for unleaded gasoline fell one-tenth of a cent to $2.051 a gallon.
U.S. stocks ended mixed and, as CNNMoney described, "choppy." The Dow Jones industrial average fell 25.57 points, or 0.32 percent, to 8,057.81. The S&P 500 gained 2.17 points, or 0.25 percent, to 858.73. The Nasdaq Composite rose just 0.77 of a point, or 0.05 percent, to 1,653.31.