Gold Weaker on Correction from Gains Scored Late Last Week, Higher U.S. Dollar

By  Paul Ploumis 22 Sep 2015  Last updated at  03:38:16 GMT

(Kitco News) - Gold prices ended the U.S. day session moderately lower Monday, on a downside technical correction from last Friday’s solid gains. A higher U.S. dollar index on this day was also a bearish weight on the precious metals markets. The gold bulls still have some upside technical momentum, following Friday’s bullish weekly high close that also saw prices hit a three-week high—but they need to show fresh power soon to keep it. December Comex gold was last down $5.50 at $1,132.30 an ounce. December Comex silver was last up $0.062 at $15.225 an ounce.

The key “outside markets” saw the U.S. dollar index solidly higher Monday, on some safe-haven demand amid the weaker stock markets in Asia, and on some short covering following recent selling pressure. Nymex crude oil prices were also solidly higher as prices hover around $46.50 a barrel.

Asian stock markets were mostly lower overnight, on worries about global economic growth following last week’s FOMC meeting in which U.S. Federal Reserve officials expressed concern about the general health of the other major economies of the world. China’s Shanghai stock index did finish the day firmer Monday, while Japan’s markets were closed for a holiday.

European and U.S. stock markets were higher Monday, which did pull some interest away from the safe-haven gold market.

The London P.M. gold fix today was $1,133.25 versus the previous London A.M. fixing of $1,136.85.

Courtesy: Kitco News