US Gold futures prices finished pit trade Monday and tapped a 4.5 month low. Most markets were under selling pressure due to the heightened European Union debt and financial crisis.

Jun Gold last traded off 20.30 at 1,563.70 oz.

Spot Gold was last quoted off 16.40 at 1,564.50 oz.

Jul Comex Silver last traded off 0.485 at 28.405 oz.

The EU debt crisis intensified over the weekend, plus more weak EU economic data was reported on Monday.

The Greek political disarray is contributing to the turmoil, as no coalition government has formed and new elections are likely.

There were rising Italian and Spanish bond yields Monday, with Spanish yields rising above the critical 6% mark.

A major region in German saw its electorate rebuke German leader Merkel's austerity policies on the weekend.

The EU debt situation overshadowed the news from China Monday, as the Chinese monetary authorities loosened monetary policy over the weekend by reducing reserve requirement ratios (RRR) on domestic bank reserves. The move follows recent weaker-than-expected Chinese economic data.

And there is still lots of media focus on JP Morgan's announced a $2-B, or more trading loss.

All this has lots of uncertainty in the market, which is Bullish for the USD index, US Treasuries and German bonds, and Bearish for raw commodity markets.

This week is shaping up to be an important trading week in many markets, including the precious metals.

The US Dollar index traded higher Monday, and hit a 2-month high overnight. The Greenback is benefiting from safe-haven demand due to the EU situation and the JP Morgan news..

Crude Oil futures prices finished lower Monday and hit another 4.5-month low of 93.65 overnight.

WTI Crude Oil closed at 94.72 -1.41 ( -1.47%)

Crude Oil in a Bearish fundamental and technical mode. The two Key markets (Crude Oil and USD) were in a Bearish posture for the precious metals Monday, and will continue to have a daily influence on the precious metals markets IMO

The Gold market Bulls are growing more frustrated as the EU debt crisis escalates but any fresh safe-haven demand for the precious Yellow metal cannot overcome the stronger selling pressure. The Bulls are also wondering when stronger bargain-hunting and safe-haven demand will come in and at what price marks, to revive Gold and keep the longer-term price up-trend on the longer-term charts in place.

The London PM Gold fixing was at 1,558.50 vs the prior London PM fixing of 1,563.00.

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.