US Gold futures prices finished pit trade lower in light trading Monday. The precious Yellow metal saw some consolidation on the charts and a corrective pullback after recent strong gains that pushed prices well up from last week's 10-month low at 1,526.70.
The Key outside markets were mildly Bullish for the precious metals Monday, as the USD index is slightly lower, and Crude Oil prices firmed. That limited selling pressure in the precious metals markets Monday.
Jun Gold last traded off 2.60 at 1,589.30 oz.
Spot Gold was last quoted minus 2.40 at 1,590.25 oz.
Jul Comex Silver last traded off 0.405 at 28.31 oz.
The World market place was just a bit more at ease to start the new trading week, as there were no surprises during the weekend, either from the Group of Eight world leaders meeting at Camp David, or from the fallout from the JP Morgan (NYSE:JPM) trading loss debacle, or from the EU debt crisis.
In fact, the market place was preoccupied with the FaceBook (NASDAQ:FB) initial public offering (IPO) that appears shakey.
The G-8 during the weekend attempted to assuage the markets by stating it wants Greece to remain in the EU. And reports out of Greece said the more conservative political party is regaining some momentum heading into the June Greek elections. The next big news headline event for the market place is an EU Summit meeting in Brussels Wednesday.
There is still some talk of further quantitative easing of US monetary policy (QE-3) if US economic data disappoints. Such would be commodity-market Bullish and possibly stock market Bullish, despite the specter of reduced demand prospects due to the sluggish economy.
Traders and investors will continue to closely monitor US, EU and Chinese economic data for early clues on monetary policy actions from the central banks.
The USD index was slightly lower Monday on a corrective pullback from recent gains. The index on Friday tapped a 4 month high.
The Greenback has benefited recently on new safe-haven demand mainly due to the EU situation. The USD index Bulls still have some upside near-term technical momentum.
Crude Oil futures prices were firmer Monday on short covering after hitting a new 6.5-month low of 91.12 bbl overnight. Crude Oil, IMO, is in a Bearish fundamental and technical posture.
WTI Crude Oil 92.54 +1.06 (+1.16%)
The London PM Gold fixing was 1,592.50 vs the prior London PM fixing at 1,589.50.
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.