US Gold prices finished pit trade higher Monday on bargain hunting and some short covering following Friday’s sell off.
Gold prices overnight tapped a 2-month low after Friday’s stronger-than-expected US employment report.
Gains in Gold Monday were limited by the stronger USD index that hit a 2 month high overnight.
Dec Gold last traded + 9.90 at 1,685.10 oz.
Spot Gold was last quoted + 8.00 at 1,685.50 oz.
Dec Comex Silver last traded + 0.323 at 31.18 oz.
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Monday was a “risk-off” trading day in the market place to start the new trading week. The US Presidential Election Tuesday is the one big uncertainty for the market, and the outcome will begin to be factored in on Wednesday morning.
There is a big leadership conference in China this week, and there are Key European Union events occurring this week.
There is a vote in Greece’s parliament this week on new austerity programs. Spanish bond yields rose Monday following some more dampening economic data from Spain.
Australia’s central bank meets this week to discuss its monetary policy. All of the above has many traders on sidelines until after the US election.
The USD index traded higher Monday and hit a 2 month high, boosted in part on the strong US jobs data Friday and on Short covering. The USD Bears have the overall near-term technical advantage but the Bulls have gained good technical momentum in here.
Nymex Crude Oil prices were a bit higher Monday after tapping a 4-month low overnight.
Crude Oil (WTI) 85.32 +0.46 (+ 0.54%)
The Crude Oil Bears have the overall near-term technical advantage. These 2 Key outside markets continue to have a daily influence on Gold and Silver prices.
India news: reports said physical demand for Gold in India is on the rise due to its festival season and because recent price declines are prompting bargain hunting.
The London PM Gold fixing was 1,683.50 Vs the prior PM fixing at 1,685.00.
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.
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