Gold Rises on Weak USD Ahead of FOMC

Gold prices are moderately higher in early U.S. trading Monday. A short-covering bounce in the futures market and bargain hunting in the cash market are featured, following the selling pressure seen late last week. A weaker U.S. dollar index to start the trading week is also supportive for the precious metals markets. June Comex gold was last up $6.30 at $1,236.30 an ounce. May Comex silver was last up $0.075 at $16.97 an ounce.

Global stock markets were weaker in uneventful trading overnight. Generally weaker raw commodity prices Monday, led by crude oil, are in part to blame for the equities markets’ weakness to start the week. Quarterly corporate earnings reports are in focus for stock market traders, at present. U.S. stock indexes are pointed toward slightly lower openings when the day session begins in New York.

Nymex crude oil prices are lower in early U.S. trading and hovering just above $43.00 a barrel. The other key “outside market” finds the U.S. dollar index lower Monday and still mired in a near-term price downtrend.

via Kitco

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