Gold gains after G-20 meeting
Prices settle higher after the weekend summit leaves the US dollar in decline.
By Andrea Tse, TheStreet
Gold prices settled higher Monday after the meeting of G20 finance ministers and central bank governors in Korea this weekend conveyed to investors the likelihood that the U.S. dollar would come under continuing pressure.
Gold for December delivery settled up $13.80 to $1,338.90 an ounce at the Comex division of the New York Mercantile Exchange. Gold Monday traded as high $1,349.50 and as low as $1,329.30.
The U.S. dollar index was falling 0.5% to $77.09, while the euro was up 0.1% to $1.40 against the dollar. The spot gold price was rising more than $12, according to Kitco's gold index.
On Monday, the U.S. dollar resumed its downward trend after finance ministers and central bank governors at the G20 meeting agreed not to pursue further currency devaluations. However, they didn't reach a consensus on outlining objectives for shrinking trade imbalances -- proposed by the U.S.
"The G20's hardened stance towards exchange rates has been interpreted as dollar-negative and should now defer further talk of 'currency wars,' and with it the threat of concerted central bank action to stem the downward moves in the dollar and take the heat out of the fast appreciating emerging market currencies," RBC Wealth Management's senior vice president and financial consultant George Gero explained in a report.
"With this threat receding for now, it makes further downward moves in the greenback more likely, in view of the fact that pretty much everyone expects the U.S. to now announce its second round of quantitative easing, thus injecting some much-needed inflation (bullish for the commodities)."
Still, Gero noted that RBC believes that the dollar decline is losing steam and will recover value towards the end of the year, whether or not another round of quantitative easing occurs.
Gold remained firmly in positive territory even as the National Association of Realtors said existing-home sales climbed 10% in September to 4.53 million from 4.12 million in August, exceeding expectations for September sales of 4.25 million, according to Briefing.com.
On Monday, Fed Research chairman Ben Bernanke spoke at a housing and foreclosures conference in Virginia. A key takeaway: Bernanke said next month U.S. financial regulators will be releasing a report scrutinizing foreclosure procedures at financial institutions.
However, he did not take any questions after his remarks and didn't make any direct references to monetary policy.
In a daily report, EverBank World Markets president Chuck Butler said he was surprised by the sell-off in gold and silver last week because he's been of the view that the widely talked about "currency war" would bolster the metals as they retained wealth and currencies went to zero. "Hmmm. Confusing," Butler said. "But confusion only leads to clarification. So just stick with the diversification plan, and you'll be able to ride out confusion that sets into the markets every now and then!"
Silver prices settled 43 cents higher at $23.54 per ounce, while copper gained 7 cents to $3.86 per pound.
Barrick Gold (ABX) was gaining 1.2% to $46.52, while New Gold (NGD) was climbing 4.6% to $6.88. Newmont Mining (NEM) was slipping 0.1% to $59.30, and Agnico-Eagle Mines (AEM) was adding 1.5% at $71.38.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 shed less than a point, ending the week higher by 1.3%, while the Dow Jones Industrial Average (+0.1%) cemented a 1.7% advance for the week. High-beta names underperformed, which weighed on the Nasdaq Composite (-0.3%) and the Russell 2000 (-1.3%).
Equity indices displayed strength in the early going with the S&P 500 tagging the 2,019 level during the opening 30 minutes of the action. However, ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'