The markets played a touch of reversal on Monday compared to recent weekly trends. Gold and silver gains finally upstaged platinum, which fell hard. As the U.S. dollar rallied, oil and stocks marked hefty losses.
In New York trading futures for bullion:
Silver for May delivery gained 31.5 cents, or 2.7 percent, to $12.105 an ounce.
Gold for June climbed $19.60, or 2.3 percent, to $887.50 an ounce.
- July platinum plunged $44.50, or 3.7 percent, to $1,167.10 an ounce.
"Monday’s action in the metals/commodities/stock and currency markets was as turbulent and as divergent as one could possibly imagine," wrote Jon Nadler, senior analyst at Kitco Bullion Dealers. "Gold may rise on the week, and, indeed, it really needs to do so, as the next week or so offers one of the year’s two best shots at Indian buyers going to their stockists to…stock up on dowry goodies"
Gold was elevated "as financial fears returned," George Gero, a precious-metals trader for RBC Capital Markets, was quoted on MarketWatch. "Pessimistic outlook for securities brought recent lower gold [prices] within range of investment."
In spot bullion, the benchmark London gold fix price stood at $877.00, or $6.50 higher than Friday. Silver gained 8 cents to $12.06. Platinum was fixed $35.00 lower to $1,180.00.
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
Crude-oil tumbled setting the biggest one-day drop in seven weeks. Oil for Mail delivery fell $4.45, or 8.8 percent, to 45.88 a barrel.
Consumers had to pay one-tenth of a cent more at the pump, according to AAA. The national average for unleaded gasoline was $2.058 a gallon.
Following six weeks of gains, U.S. stocks stumbled Monday with the Dow marking its biggest decline in seven weeks.
The Dow Jones industrial average plunged 289.60 points, or 3.56 percent, to 7,841.73. The S&P 500 fell 37.21 points, or 4.28 percent, to 832.39. The Nasdaq Composite dropped 64.86 points, or 3.88 percent, to 1,608.21.