Gold Falls to Five Week Low on Monday

Gold prices are solidly lower and fell to a five-week low in early U.S. trading Monday, pressured by upbeat trader and investor attitudes about the marketplace to start the trading week. Silver prices hit a six-week low overnight. Bears are now in near-term technical control of both of these precious metals markets. August Comex gold was last down $14.80 an ounce at $1,241.60. July Comex silver was last down $0.192 at $16.455 an ounce.

World stock markets were mostly higher overnight and U.S. stock indexes are pointed toward higher openings when the New York day session begins. In overnight news the closely watched German Ifo business confidence index hit a record high of 115.1 in June from 114.6 in May. This news helped to lift European shares and support the risk-on mentality in the markets so far today.

The key “outside markets” on Monday morning see Nymex crude oil futures prices slightly higher on more tepid short covering after hitting a 14-month low last week. The oil market bears still have the solid overall near-term technical advantage as prices are trading below $44.00 a barrel. Meantime, the U.S. dollar index is firmer early today. The greenback bears still have the overall near-term technical advantage.

U.S. economic data due for release Monday includes durable goods orders, the Chicago Fed national activity index, and the Texas manufacturing outlook survey.

via Kitco

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