Gold Lower After Profit Taking and Muted Reaction to US Airstrike

Gold prices are moderately lower on profit-taking from the shorter-term futures traders and on a downside technical correction from recent good gains that pushed prices to a five-month high last Friday. June Comex gold was last down $5.60 an ounce at $1,251.70. May Comex silver was last down $0.296 at $17.855 an ounce.

World stock markets were narrowly mixed in quieter overnight trading. U.S. stock indexes are pointed toward near-steady openings when the New York day session begins. The resilience of the U.S. stock market in the wake of last Friday’s downbeat U.S. jobs report is also a negative for the safe-haven gold market.

The world marketplace is not showing a significant reaction to the weekend news that the U.S. is sending a Navy task force to waters off of North Korea, to conduct exercises with the South Korean navy. Still, the tensions between North Korea and the U.S. are on the rise and this matter could be the next major geopolitical crisis that would have a major impact on world markets, and be bullish for the gold market.

Fed Chair Janet Yellen delivers a speech late Monday in Michigan. She could make some market-sensitive comments but it’s not likely.

The key outside markets on Monday morning see the U.S. dollar index slightly higher and hitting a nearly four-week high overnight. The greenback bulls have the overall near-term technical advantage. Meantime, Nymex crude oil prices are firmer and trading near Friday’s four-week high. The oil bulls have upside technical momentum to suggest prices can at least trade sideways, if not sideways to higher, in the near term.

via Kitco

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