US Gold prices finished pit trade Monday lower on consolidation action.
The market was quiet as US and Canadian markets were closed. The Key outside markets were also bearish for the precious metals markets Monday, as the USD index was higher and Crude Oil prices are weaker on the day.
Dec Gold last traded off 5.00 at 1,775.80 oz.
Spot Gold was last quoted -7.40 at 1,774.50 oz.
Dec Comex Silver last traded off 0.572 at 34.00 oz.
News that the World Bank lowered its forecast for China’s annual economic growth rate to 7.7% from 8.2% in an earlier forecast did put some general selling pressure into the raw commodity sector and world stock markets Monday.
With the US government closed for the Columbus Day holiday Monday there were no economic reports released. US markets were open as usual, but quiet.
There was more disappointing economic data coming out of the EU Monday. Industrial output in Germany declined by 0.5% in August.
European Union finance ministers met late Monday in Brussels to discuss their ongoing debt crisis. Tuesday German Chancellor Angela Merkel goes to Athens to discuss Greece’s finance problems.
Spain has yet to formally ask for a bailout package from the EU, to the disappointment of many Euro currency Bulls.
The USD index traded higher Monday, on Short covering in a Bear market. The Greenback Bears still have the overall near-term technical advantage.
Nymex Crude Oil prices were weaker Monday but up from the early lows.
WTI Crude Oil 89.58 -0.30 (-0.33%)
Crude Oil Bears have the near-term technical advantage as a 4 wk old downtrend is in place on the daily chart. These 2 Key outside markets will continue to have a daily influence on Gold and Silver prices.
The London PM Gold fixing is 1,773.50 vs. the prior PM fixing at 1,784.00.
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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