US Gold prices finished pit trade lower tapping a 4-wk low. The Key outside markets were Bearish for the precious metals Monday, as the USD Index was firmer and Crude Oil prices were lower.
The near-term technical posture of the Gold market has weakened a bit, and that prompted some chart-related selling pressure Monday.
Dec Gold last traded -21.40 at 1,738.30 oz.
Spot Gold was last quoted -17.70 at 1,737.00 oz.
Dec Comex Silver last traded -0.894 at 32.775 oz.
US economic data Monday was upbeat, which has been the trend lately.
Gold and Silver market Bulls are beginning to get somewhat concerned that recent US economic data that has been a bit stronger than expected could prompt the US Federal Reserve to begin to shut its monetary stimulus faucet that has been opened wide for 4 yrs. Such notions are premature, but they worked to pressure the metals markets nevertheless.
In overnight news: European and Asian stocks digested weekend news that China’s consumer inflation came in a bit lower than expected in the latest batch of Chinese economic data. That prompted speculation among traders that China’s central bank may have more leeway in further easing monetary policy. China’s trade surplus also grew in September, which suggests domestic demand in China is on the upswing. The weekend China data also showed bank lending growth weaker than expected in September.
Asian and European stocks showed mixed reactions to the China data, as European stocks were somewhat supported while Asian stocks were narrowly mixed. Q-3 GDP data from China is due Thursday.
On the EU front it’s Greece’s turn to be in the spotlight this week, as EU officials cannot seem to agree on how or when to provide the next tranche of bailout funds to the financially troubled country.
Spain and its leaders’ reluctance to ask for fresh EU financial assistance is also a concern to the market place and is making for a more risk-averse overall trader/investor mentality to start the new trading week.
This week is “LME week” in London, whereby the London Metals Exchange hosts a series of meetings and events. Many major world metals traders will be in London for the week.
The USD Iindex traded firmer Monday on some short covering and some perceived safe-haven buying. The USD Bears still have the overall near-term technical advantage.
Nymex Crude Oil prices were lower Monday.
WTI Crude Oil 91.62 -0.24 (-0.26%)
Crude Oil Bulls and Bears are on a level near-term technical playing field. These 2 Key outside markets will continue to have a significant daily influence on Gold and Silver prices.
The London PM Gold fixing is 1,736.00 vs. the previous PM fixing at 1,766.75.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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