Gold futures recovered from an eight-month low as equities dropped, turning the precious metal into a popular alternative investment. Silver continued a decline to the lowest level in four years.
The Standard & Poor's 500 Index of stocks declined as much as 1 percent. Government data showed that August's investments in previously owned U.S. homes also fell for the first time in five months, while industrial metals and agriculture led commodities in slumping to a five-year low, reports Bloomberg.
On Monday the U.S. dollar index climbed to a 14-month high. This, combined with extremely bearish technicals in gold and silver, have enabled the metals sellers to dominate the market. December Comex gold rose $1.00 at $1,217.60 an ounce while spot gold traded higher $0.80 at $1,217.50. December Comex silver declined $0.054 at $17.79 an ounce, according to Forbes.
Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview with Bloomberg. "Gold got some support from the weakness in equities and lower-than-expected U.S. home-sales data. The overall sentiment remains bearish."
The London P.M. gold fix closed at $1,213.50, lower when compared to the previous London A.M. fixing of $1,214.00, reports Forbes.
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