Gold was flat to slightly higher through Hong Kong and the first half of the London session on Monday, but caught ignition once New York opened, shooting up nearly $20 by just past noon, before easing into the Globex and finishing at $884.80/oz., up $16.10. Overnight, gold is slightly higher.

Platinum was hammered through the far East and European trading, leveled off into the noon hour, but then plunged again before inching back up on the Globex to end at $1161/oz., down $44. Overnight, platinum has been flat.

Silver’s sojourn below the $12 line lasted only a day, as it broke past the mark early in London, then traded within a tight 20-cent range for the rest of the day, closing in the middle at $12.10/oz., up 21 cents. Overnight, silver is little changed. (Click here for charts)

Although platinum took a serious hit yesterday, gold and silver moved contrary to the usual suspects, rising sharply in the face of plummeting oil and equities, and a strengthening dollar.

As the Hightower Report saw it: “The gold market managed to reject some minor weakness in the early morning action and then the market impressively extended the strength throughout the trading session. In fact, considering the magnitude of the gains in the Dollar, the strength in gold prices at the start of the new week was really impressive. With a sharp down day in the equity market and weakness in a host of physical commodities, the gold market had to be garnering some flight to quality interest. However, seeing the prospect of a labor dispute in the South African mining sector and the presence of US bank sector turmoil rumors was evidently more than enough fodder to send gold prices soaring. With the gold market (at least temporarily) rising above the 100 day moving average, it is also possible that some technical based buying was in motion during the trade Monday.”

James Moore, of TheBullionDesk.com noted that gold “has been prevented from further weakness by bargain hunters as well as physical jewelry interest. But Moore has been consistently cautious, and he quickly added that “gold is likely to be at risk to further pressure short-term, particularly with more ETF redemptions expected.”

“The metal may test down to the $820 area before finding sufficient support,” Moore predicted.

Elsewhere, labor problems in South Africa have the potential to push gold higher. That country’s National Union of Mineworkers said it will ask for a 15% pay increase for its 190,000 members who work in gold and coal mines. The union is also demanding improved living allowances and health benefits

Whether companies can afford to go along remains to be seen.

Source: Gold, Silver Solid Gainers