Gold Lower As Investors Seek Riskier Assets

Gold prices are modestly lower in early U.S. trading Monday, amid an improving general world trader/investor risk appetite. June Comex gold was last down $2.20 at $1,221.30 an ounce. May Comex silver was last down $0.016 at $15.03 an ounce.

Global stocks were mixed in quieter overnight trading. Chinese markets were closed for a holiday. U.S. stock indexes are pointed toward slightly higher openings when the day session begins in New York.

In overnight news, the Euro zone unemployment rate was reported at 10.3% in February from 10.4% in January. The regions producer price index was down 0.7% in February, month-on-month, and down 4.2%, year-on-year. The drop in the PPI was the largest in over six years, and underscores the very difficult battle the European Central Bank is waging to combat price deflation.

The key “outside markets” on Monday find the U.S. dollar index slightly higher, in the aftermath of an upbeat U.S. employment report released last Friday. Still, the greenback hit a seven-month low late last week, and dollar index prices are in a near-term downtrend. Meantime, Nymex crude oil prices are slightly lower and hit a four-week low overnight. There are growing notions that a major oil-producers’ meeting in mid-April will not produce a production-constraint agreement. Russia, Saudi Arabia, Iran and other smaller oil producers are scheduled to hold a meeting on April 17.

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