US stocks shot 3 percent higher on Tuesday on speculation Federal Reserve Chairman Ben Bernanke would signal new help for the economy, giving investors hope the worst was over after a four-week rout. Gold recoiled from its first ever foray above $1,900 an ounce on Tuesday in the sharpest one-day drop in 18 months, as rebounding equities prompted traders to rethink a bullion rally which many now see as overdone.
Based on the latest available data, the Dow Jones industrial average was up 319.99 points, or 2.95 percent, at 11,174.64. The Standard & Poor''s 500 Index was up 38.41 points, or 3.42 percent, at 1,162.23. The Nasdaq Composite Index was up 100.68 points, or 4.29 percent, at 2,446.06.
US December gold futures settled down $30.60, or 1.6 percent, at $1,861.30 an ounce, after topping at $1,917.90 overnight. After the close it extended its slide below Tuesday''s traded low of $1,859.60, to $1,831.70. Spot gold was last at $1,833.50/1,834.25, down 3.4 percent in late New York trade, which would make the biggest one-day percentage loss since February 2010. Spot silver was down more than 4 percent at $41.59/67 an ounce. September silver settled at $42.2910 an ounce, down $1.O34.
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