Gold Lower After Profit Taking

Gold prices ended the U.S. day session lower Monday, on some more downside corrective pressure and profit taking after prices last week hit nearly three-month highs. Bearish outside markets—lower crude oil prices and a firmer U.S. dollar index—worked against the precious metals bulls on this day. Rallying world stock markets that are at or near record or multi-year highs are also a negative element for safe-haven gold. April Comex gold was last down $10.30 an ounce at $1,225.50. March Comex silver was last down $0.108 at $17.825 an ounce.

Asian and European stock markets were mostly higher Monday. U.S. stock indexes touched new record highs Monday.

The key “outside markets” for the precious metals on Monday saw the U.S. dollar index trade slightly lower early on but then rallied to well above unchanged as the session progressed. The greenback bulls have some upside momentum as prices have been trending higher for almost two weeks.

Meantime, Nymex crude oil prices were solidly lower Monday. Oil prices are back in a sideways trading range that has bound the market for weeks. Look for more sideways and choppy trading in the crude oil market in the near term.

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