Gold prices are seeing moderate gains in early U.S. trading Monday. Some short covering in the futures market and perceived value buying in the cash market are featured to start the trading week. Prices overnight did drop to a seven-week low before the buyers stepped in. June Comex gold was last up $6.20 an ounce at $1,233.10. July Comex silver was last up $0.106 at $16.38 an ounce.
Sunday’s French presidential election saw the centrist candidate Emmanuel Macron easily defeat the right-wing candidate Marine LePen. Macron was expected to win handily and world markets did not show a significant reaction. The Euro currency hit a seven-month high early Monday, but then backed off.
In overnight news, China’s April imports were reported up 11.9%, year-on-year, while exports were up 8.0%. Both of those numbers, while hefty, did not meet market expectations and continue a pattern of a slowing pace of economic growth for the world’s second-largest economy. Worries about slowing Chinese demand for raw commodities has been a bearish element for the precious metals markets recently.
A feature in the marketplace last week was the steep drop in crude oil prices. Nymex crude oil futures prices Friday hit a low of $43.76 a barrel, which is a 12.5-month low. Friday’s high-range close does hint the oil bears are exhausted. Oil prices early Monday are trading near steady at just above $46.00.
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