Gold Lower As Investors Seek Riskier Assets

Gold prices are modestly lower in early U.S. trading Monday, amid an improving general world trader/investor risk appetite. June Comex gold was last down $2.20 at $1,221.30 an ounce. May Comex silver was last down $0.016 at $15.03 an ounce.

Global stocks were mixed in quieter overnight trading. Chinese markets were closed for a holiday. U.S. stock indexes are pointed toward slightly higher openings when the day session begins in New York.

In overnight news, the Euro zone unemployment rate was reported at 10.3% in February from 10.4% in January. The regions producer price index was down 0.7% in February, month-on-month, and down 4.2%, year-on-year. The drop in the PPI was the largest in over six years, and underscores the very difficult battle the European Central Bank is waging to combat price deflation.

The key “outside markets” on Monday find the U.S. dollar index slightly higher, in the aftermath of an upbeat U.S. employment report released last Friday. Still, the greenback hit a seven-month low late last week, and dollar index prices are in a near-term downtrend. Meantime, Nymex crude oil prices are slightly lower and hit a four-week low overnight. There are growing notions that a major oil-producers’ meeting in mid-April will not produce a production-constraint agreement. Russia, Saudi Arabia, Iran and other smaller oil producers are scheduled to hold a meeting on April 17.

via Kitco

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