Gold Prices Explode by over $60 an Ounce

Jittery investors pulled their money out of equities and again poured into gold and other commodities as the U.S. dollar fell in price and financial companies continue to flirt with bankruptcy and failure.

December delivery for goal surged by 8.25 percent, rising to $64.50, reaching $845 an ounce on the NYMEX.

Silver prices also increased significantly for the day. The December contract moved up by 88.8 cents to $11.405 an ounce.

Oil Drops to 5-month Low on Weak Demand, other Factors

Oil continues to plunge from its record high which reached $147 a barrel in July, as it dropped by over $2 a barrel, after settling the lowest on Thursday since April 4. Brent crude followed suit in London as it declined by over $2 a barrel as well, finishing at $103.95.

With China decreasing imports after the Olympics and consumers driving less, oil prices will probably continue to fall. Other factors include the ongoing storm season and the unknown decision by OPEC on what it will do going ahead. The weak U.S and world economy will continue to affect the price also.

The rise in value of the U.S. dollar will also continue to drive down oil prices.

With the Louisiana Offshore Oil Port, (largest oil-import terminal in the U.S.) saying they started offloading oil tankers early Thursday morning, it's also thought it could help keep oil prices down because of the quick resumption of delivery.

Gold Settles at $803.20 for December Delivery - Drops 4th Straight Day

The U.S. dollar finished the day the strongest it has this year against the euro, as investors continue to abandon precious metals and other commodities. It was the fourth straight session drop for the metal, which plunged by $5 to finish at $803.20 for December delivery on the NYMEX. Earlier in the day it fell as low as $798.10.

With the U.S. dollar strengthening lately, traders have been abandoning commodities as an inflation hedge and moving their funds elsewhere.

"The short-term direction in gold remains pointed to lower levels, and selling could intensify if $790 is breached this week," Jon Nadler, analyst with Kitco Bullion Dealers Montreal, said in a note.
Silver also dropped today, as well as copper, although silver only fell by less than a penny to $12.94 an ounce. Copper ended the session at $3.266 a pound, shedding 4.6 cents.