Precious metals on Monday were mixed as gold dipped slightly, platinum surged, and silver climbed even higher following a record-breaking month where the metal rose 27 percent in May, the most in 22-years. In other markets, crude-oil jumped and U.S. stocks rallied.
In New York trading futures for bullion:
Silver for July delivery gained 12.5 cents, or 0.8 percent, to $15.735 an ounce.
Gold for August fell 30 cents, or 0.03 percent, to $980 an ounce. It reached as high as $990.20 before succumbing to selling pressure later in the day following a rallying U.S. dollar.
- July platinum surged $24.60, or 2.1 percent, to $1,220.60 an ounce.
"Given the re-emergence of the typical inverse relationship between the dollar and gold, the likelihood of further weakness in the dollar should drive gold to a test of its 2008 record highs," Toby Hassall, an analyst at Commodity Warrants Australia Pty in Sydney, was quoted on Bloomberg.
In spot bullion, the benchmark London gold fix price rose $6.25 to $981.75 an ounce. Silver jumped 34 cents to $15.86 an ounce. Platinum was fixed $39.00 higher to $1,214.00.
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
Oil on Monday gained for the sixth straight day. New York crude-oil for July delivery soared $2.27, or 3.4 percent, to close at $68.58 a barrel.
Meanwhile, gasoline prices at the pump moved higher. The national average for unleaded gasoline climbed a penny to $2.512 a gallon, according to AAA. The price is 8.8 cents higher than a week ago and 45.1 cents higher than last month.
U.S. stocks rallied Monday "as better-than-expected readings on manufacturing activity raised hopes that a global economic recovery is brewing," writes Ben Rooney from CNNMoney.
The Dow Jones industrial average surged 221.11 points, or 2.60 percent, to 8,721.44. The S&P 500 Index jumped 23.73 points, or 2.58 percent, to 942.87. The Nasdaq Composite Index soared 54.35 points, or 3.06 percent, to 1,828.68.