Gold Lower Despite Safe Haven Demand

Gold prices are modestly lower in early U.S. trading Monday, as safe-haven demand is not giving the precious metal a lift despite a “risk-off” day in the market place. World stock markets are under some selling pressure Monday, but it’s not extreme. December Comex gold was last down $4.30 at $1,129.70 an ounce. December Comex silver was last down $0.044 at $14.505 an ounce.

On this last trading day of the month, China’s Shanghai stock index was down just short of 1% Monday. Reports said China’s central bank was not intervening to buy domestic shares today. The London Financial Times reported Monday that China will abandon its intervention in its stock market, as Chinese officials acknowledged the efforts were not working as planned. Thursday China celebrates 70 years since its victory over Japan in World War Two. There will be a big military parade on that day. Market watchers speculate China’s government does not want a slumping stock market to take the luster away from the big parade.  

Other Asian and European stock indexes were weaker Monday, following the lead from China. U.S. stock indexes also down in preopening trading.

via Kitco

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