Gold, Silver & Oil Rally As U.S. Dollar Sinks

By Paul Ploumis (ScrapMonster Author)

April 12, 2016 03:10:42 AM

(Kitco News) - Gold and silver prices posted solid gains Monday, amid bullish “outside markets” that saw the U.S. dollar index lower and crude oil prices higher. Both precious metals markets hit nearly three-week highs today. June Comex gold was last up $13.80 at $1,257.50 an ounce. May Comex silver was last up $0.551 at $15.935 an ounce.

The U.S. dollar index dropped to an eight-month low Monday as prices continue to trend lower in the wake of perceived dovish rhetoric coming from U.S. Federal Reserve officials. Meantime, Nymex crude oil prices pushed above $40.00 a barrel Monday as there are near-term technical clues this market has bottomed out. A major oil-producers’ meeting is scheduled for next Sunday, at which time participants will discuss limiting their production levels.

World stock markets were mixed overnight. China’s equities market rose in part due to an upbeat inflation report that showed China’s domestic consumer price inflation rising 2.3% in March, year-on-year, and unchanged from February. China’s central bank wants to see an annual inflation rate of 3.0%. Traders and investors reckon this latest reading below 3.0% will allow the central bank to initiate further economic stimulus measures.

Japan’s stock market was weaker Monday on continued worries about the appreciation of the Japanese yen against other major world currencies, especially the U.S. dollar. U.S. stock indexes were firmer Monday afternoon.

In overnight news, the Paris-based OECD think tank issued a report that forecasts continued slowing world economic growth in the coming months. The report did say the decline in China’s economic growth rate will stabilize.

There were no major U.S. economic reports released Monday.

Courtesy: Kitco News