Weak US Sanctions Drive Gold Lower

Gold prices have extended early weakness to trade moderately lower in late-morning dealings Monday. The just-announced U.S. sanctions against Russia were deemed by the market place as not being as severe as could have been implemented. That likely put a bit of downside price pressure on gold.

Also, some upbeat U.S. economic data released Monday–pending home sales and the Texas manufacturing survey–helped to add some more downside price pressure on gold. The rallying U.S. stock market Monday is a bearish “outside market” force that, too, is working against the precious metals markets Monday. June gold was last down $7.60 an ounce at $1,293.20.

via Kitco

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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, Alfonso Esparza 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 has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. 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