Gold Falls After Calm Returns After Failed Turkish Coup

Gold slid one percent on Monday as investor jitters calmed following the failed coup attempt in Turkey, while oil prices edged higher with the turmoil unlikely to hit energy supplies.

Copper fell for a second session on pressure from a stronger dollar while corn prices jumped, underpinned by forecasts of hot-dry weather potentially reducing U.S. crop yields.

Turkey widened a crackdown on suspected supporters of a failed military coup, taking the number of people rounded up in the armed forces and judiciary to 6,000, and the government said it was in control of the country and economy.

Spot gold, which fell more than one percent to a low of $1,323.7, was down 0.7 percent to $1,328.60 an ounce by 0523 GMT. Bullion fell more than 2 percent last week, the first weekly decline in seven weeks.

“Turkey is not a big oil producer nor consumer, and the oil market appears to be displaying fatigue in response to repeated counts of geopolitical ‘events’ in the last few weeks, and thus only seems to react more strongly to events that matter on the fundamental side,” said Vyanne Lai, an economist at National Australia Bank.

“Gold prices had risen quite a bit in the aftermath of Brexit but now prices are just holding at elevated level.”

via Reuters

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza