Gold broadly lower in thin trading after gains
The precious metal starts the day with clear bearish bias after the relief rally seen last week across the board that helped the metal end with slight gains. The trading volumes are still thin with many markets still out on holiday yet gold remains its cautious downside trend despite the weakening dollar.
Investors are assessing the market still with the lack of major market movers this week where gold has one eye on Europe and the other on the United States with good macroeconomic data from the world's largest economy recently that is keeping the lid on gold demand. Europe is support for haven surely yet with the liquidations seen and the strong dollar gold lost the appeal for now yet still we shouldn't rule its general haven status yet!
Gold is currently trading below $1600 down 0.63% at $1596.68 per ounce after recording the high of $1611.25 and the low of $1591.20 per ounce.
We can see the tight trading ranges across the board and European equities opened today with cautious gains though we still expect the trading volumes to remain thin today and generally this week.
The vigilant trading comes with the lack of major data from Europe mainly this week with only the Italian bond auctions the main attraction.
We still expect gold to resume the thin trading today especially with U.K. markets still closed. The dollar is trading to the downside this morning yet not supporting gold especially with consumer confidence ahead and expected to show improvement and that is further pressure on the metal from stabilizing conditions in the United States. The dollar index is currently hovering around 79.82 down almost 0.22% trading so far between the high of 80.06 and the low 79.79.