Gold Falls as U.S. Dollar Rallies Across the Board Despite Financial Uncertainty
"Looks Like The Non Bailout was the correct decision after all !"
(CEP News) - Gold is currently the sole commodity selling off on Tuesday morning, in sharp contrast to Monday when it was rallying.
Chicago Board of Trade (CBOT) gold is trading down $16.60 per ounce to $877.80 USD, as markets hope for a revised bailout plan that will eventually be passed by the U.S. House of Representatives following yesterday's surprise development.
"Yesterday's turmoil in the financial markets was true testimony to gold's status as a safe-haven asset, with the surprise rejection by U.S. Congress of the proposed $700bn bailout plan inducing fear in risky assets but supporting a close back above $900/oz for gold, the highest settlement price since early August," wrote Kevin Norrish from Barclays Capital.
The U.S. dollar is conversely making broad-based gains, with the U.S. dollar index up 2.145 points to 79.616.
Silver contracts at the CBOT are down $0.70 to $12.32. Bloomberg's index for base metals is up 0.23 points to 195.26.
West Texas Intermediate crude oil is up $2.35 per barrel to $98.72. Meanwhile, Intercontinental Exchange (ICE) RBOB gasoline futures are up 6.02 cents per gallon to 242.17 cents. Heating oil at the ICE is up 7.55 cents per gallon to $289.05 cents. Natural gas is up $0.101 mmbtu to $7.322.
Wheat futures at the CBOT are up $15.00 to $683.00.