Gold Lower After Profit Taking

Gold prices are modestly lower in morning dealings Monday, on some profit-taking pressure from recent gains. Bulls remain in firm near-term control as prices are trending higher and hovering near last Friday’s 13-month high. The overall near-term path of least resistance for prices remains sideways to higher. April Comex gold was last down $3.40 at $1,267.20 an ounce. May Comex silver was last down $0.039 at $15.655 an ounce.

World stock markets were mostly weaker Monday on corrective pullbacks following recent good gains. The focus of traders and investors this week is the Thursday meeting of the European Central Bank. Many believe the ECB this week will announce further monetary policy stimulus measures by pushing interest rates further into negative territory, in an effort to jumpstart the moribund Euro zone economy.

China held its big central planning meeting during the weekend, with economic officials laying out plans to promote growth. Government officials said China’s GDP will grow by 6.5% to 7% this year. That’s a hefty number by world standards but is the slowest projected growth rate laid out by China in over 25 years.

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