Gold, Silver and Crude Oil Trade
US Gold futures finished pit trading higher Monday on Bullish outside markets that included a weaker US D index and higher Crude Oil prices.
Short covering and bargain-hunting buying interest were featured following Friday's losses. Trading turned sideways in the Gold market, the Bulls and Bears struggle for near-term control with a neutral result Monday.
Aug Gold last traded + 13.00 at 1,592.00 oz.
Spot Gold was last quoted + 9.40 at 1,592.25 oz.
Sept Comex Silver last traded + 0.54 at 27.46 oz.
The market's focus turned back to the EU, and the prevailing sovereign debt crisis. Eurozone finance ministers met again Monday in Brussels to try to figure out how to implement the recently agreed upon measures to stabilize the EU banking and financial system.
There are doubts that plan of action that will or can be agreed by the major EU countries.
China's consumer price inflation dropped in June and is now at its lowest level in over 2 yrs.
A German Treasury bill auction Monday took a record negative yield, following last week's European Central Bank rate cut.
The market awaits Wednesday's FOMC minutes from the US Federal Reserve for any clues on US monetary policy actions on the horizon.
The recent grim World economic news, including last Friday's US jobs report and Monday's data from China and the EU, raises the specter of price deflation. Price deflation is the enemy of most markets, especially commodity markets and including Gold and Silver.
It is however, important to note there are many commodity markets trying to rebound from their lows and showing some strength, to begin to suggest the sector has bottomed out.
Markets start to react to anticipated events before they actually occur, and that means the raw commodity sector could start to rebound even though some more bad economic news may be seen in the near term.
The USD index was weaker Monday on profit taking, but did poked to a fresh 5-wk high overnight as the Bulls still have some Northside near-term technical momentum going.
Nymex Crude Oil futures prices finished higher on short covering and bargain hunting. There are some early clues the Crude Oil market has put in a bottom.
WTI Crude Oil 86.32 +1.87 (2.21%)
The London PP Gold fix is 1,585.00 vs. the prior London PM fixing at 1,587.00.
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.