Gold Higher After Rebound From Selling Pressure

Gold prices are moderately higher in early U.S. trading Monday, on a rebound from the selling seen late last week that produced a technically bearish weekly low close on Friday. The gold bulls have faded a bit recently and Monday’s lift is much-needed. December Comex gold was last up $3.90 at $1,166.60 an ounce. December Comex silver was last up $0.083 at $15.91 an ounce.

A weaker U.S. dollar index to start the trading week is also a mildly bullish “outside market” force working in favor of the precious metals bulls. The other outside market finds crude oil prices near steady Monday morning, but the oil bears have some technical momentum on their side.

In overnight news, the closely watched German Ifo business conditions index fell to 108.2 in October from 108.5 in September. However, the number was higher than forecasters expected. The Euro currency saw a modest recovery after a big sell off Friday that drove prices to a 2.5-month low.

European stock markets saw a downside correction Monday, following Friday’s gains that were inspired by an unexpected easing of monetary policy by China’s central bank, and by dovish comments from European Central Bank President Mario Draghi last Thursday. Asian stock markets were mostly firmer Monday, in the wake of the China central bank cutting its interest rates last Friday.

This is an extra important week for the marketplace. Featured is the Federal Reserve’s FOMC monetary policy meeting that begins on Tuesday and ends Wednesday afternoon. Also, the big Chinese government five-year planning meeting began on Monday and lasts until Thursday.

via Kitco

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