Precious metals glitter

Gold prices scored a four-week high on Monday

Bullion prices ended the U.S. day session with solid gains on Monday, 12 January 2015 at Comex. Gold prices scored a four-week high on Monday. Safe-haven demand was featured amid recent stock market shakiness and lingering worries about the European Union's economic and financial health. Crude oil prices slumped again Monday and hit fresh 5.5-year lows. That once again spooked stock market investors, which in turn prompted a movement toward the safe-haven gold market.

February Comex gold ended up $18.30 at $1,234.50 an ounce.

March Comex silver last traded up $0.191 at $16.61 an ounce.

The U.S. dollar index also backed off from its overnight high, which was also encouraging for the gold and silver prices.

In overnight news, the Organization for Economic Cooperation and Development reported economic growth in the coming months is likely to be stable in the U.S. and Canada, to slow in Germany, Italy Russia and the U.K., and to increase in China and India.

In another worrisome development on the deflation watch, copper prices fell to a 4.5-year low overnight. Recent weaker economic data coming out of major copper consumer China, and the plunging price of crude oil, have sunk the major industrial red metal.

The next major data point coming into focus for traders and investors is the 22 January 2015 meeting of the European Central Bank. Recent downbeat European Union economic data, the specter of price deflation and rhetoric coming from ECB officials suggest the central bank will soon initiate monetary stimulus in the forming of quantitative easing.

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