Gold lost nearly one-third of its highest peak on Monday, but still gained more than $12 on the day. The announcement of China’s massive $586 billion stimulus package on Sunday helped spur precious metals investors forward. New York silver, gold and platinum futures gained 2.6 percent, 1.7 percent and 0.9 percent, respectively.
December crude-oil surged $1.37, or 2.2 percent, to close to $62.41 a barrel. The contract had fallen as low as $59.10, which was a level not seen since March of 2007.
December silver gained 25.7 cents to end at $10.22 an ounce.
January platinum rose $7.90 to settle at $859.90 an ounce.
Gold for December climbed $12.30 to close to $746.50 an ounce. Its intraday high was $768.90.
"The new week got off to a ‘stimulating’ start in the commodities markets, following China’s weekend announcement of a massive spending plan aimed at getting its (and, indeed, the world) economy back on track," said senior analyst Jon Nadler at Kitco Bullion Dealers.
"Gold remains within the recently established range and still requires a break above $780 to stimulate more bulls into action. The risk remains present that another round of liquidations from funds could be initiated on the back of some really sour news in the economy. Any economy," added Nadler.
Gold, considered a hedge during times of high inflation and economic uncertainty, tends to follow oil and move opposite to the U.S. dollar. A rising greenback makes dollar-denominated commodities, like bullion, more expensive for holders of other world currencies. When prices are falling and economic activities are shrinking, gold prices tend to move lower.
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