US Gold futures finished pit trade lower Monday on a Southside correction and some consolidation following Friday's big gainer.

The Gold Bulls have the near-term technical momentum in here, but have to follow through.

Aug Gold last traded - 5.80 at 1,598.50 oz.

Spot Gold was last quoted -0.90 at 1,598.75 oz.

Sept Comex Silver last traded -0.057 at 27.555 oz.

It's not surprising to see markets experience a downside price correction following big gains, such as the gold and silver markets saw on Friday.

Monday saw weak world economic news, the manufacturing report coming out of China, which showed the worst reading for that report since November.

Reports overnight showed manufacturing activity in the EU was weak, with EU unemployment also reported at a record high rate of 11%.

Next, the latest US ISM manufacturing survey came in weaker than expected, to put pressure on the raw commodity markets Monday.

Traders are awaiting Friday morning's US jobs report for June, it is expected to show the Key non-farm payrolls rising by 90,000 jobs in June.

The US Independence Day holiday falls on Wednesday, with many traders likely opting to take the entire week off, so this will likely be a light trading week.

The USD index firmed Monday on a corrective bounce from its big losses Friday that saw the Greenback Bulls fade badly.

Nymex Crude Oil futures prices saw some pullback following its big gains of Friday.

Crude Oil (WTI) 83.57 -1.39 (-1.64%)

The Key outside markets were in a Bearish mode for the precious metals Monday.

Technical odds have increased that the Crude Oil market may have now put in a market low and that the USD may have put in a near-term high. Such a scenario would be Bullish for the precious metals complex.

The London PM Gold fix is 1,592.00 vs the prior London PM fixing at 1,598.50.

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.