Gold Weaker Amid Lack of Bullish News in Marketplace

(Kitco News) - Gold prices were ending the U.S. day session weaker Monday, but up from the daily low. No new bullish fundamental developments are allowing gold prices to languish in a sideways to lower drift. The recent rallies in world stock markets have also hurt the safe-haven metal, as such indicates there is not much risk aversion in the marketplace at present. August Comex gold was last down $3.40 an ounce at $1,320.00. September Comex silver was last down $0.014 at $19.675 an ounce.

The key “outside markets” on Monday saw the U.S. dollar index weaker and Nymex crude oil prices lower. Nymex crude oil futures hit a three-month low Monday are hovering just above $43.00 a barrel. If oil prices continue to trend lower, such would be a significantly bearish factor for the entire raw commodity sector, including the precious metals.

The focal point of the marketplace this week will be the U.S.  Federal Reserve’s Open Market Committee (FOMC) that meets Tuesday and Wednesday, and the Bank of Japan monetary policy meeting that takes place Thursday and Friday. No change is expected in U.S. monetary policy this week, but it is expected the BOJ will announce a new monetary policy stimulus package.

U.S. economic data Monday was light and included the Texas manufacturing outlook survey. However, the report pace will pick up significantly Tuesday with a big batch of data due.

Courtesy: Kitco News