Once again rising near $1,000 an ounce — the same high prices that led some consumers to sell their gold jewelry and others to melt the kitchen sink — gold’s great heights on Tuesday were quick to fall as oil prices slowed the progress of gold and several other metals that were boosted Monday.
Gold hit that staggering $1,000 an ounce point a mere four months ago, and as the week began, the metal looked ready and rearing to rise to a similar number. Reaching $989.60 an ounce for August delivery on the New York Mercantile Exchange, the price of gold had numerous influences this Tuesday morning: the recent Freddie Mac and Fannie Mae debacle and more concerns over the U.S. economy and the weight of the dollar.
As gold reached a four-month high, this range of issues set the perfect scene for the “safe haven” metal to grow further in popularity among nervous consumers and traders. However, once oil prices began to plunge, August contracts were down to $978.70 an ounce at the end of the day — still higher than the previous day, but not as close to the record-breaking numbers that were expected.
Compared to other precious metals, however, gold performed well. We expect the metal to continue to fare better than most other assets. Other precious metals prices were lower, with September silver down 24 cents to $19.01 per troy ounce and October platinum plummeting $54.10 to $1,981.90 per troy ounce,” one article reported. Bearish economics never seem to help commodities, do they? Corn, soybeans, wheat and energy futures also joined the slow fall.