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

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

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