By Paul Ploumis 18 Aug 2015 Last updated at 05:37:57 GMT
Gold prices ended US day session Monday on a firmer note.It shed some of its gains as the session progressed, but managed to close higher.
(Kitco News) - Gold prices ended the U.S. day session firmer Monday, on some more safe-haven buying and following a much weaker-than-expected U.S. economic report issued in morning trading. Increased speculator buying interest was also seen amid an improving technical picture. December Comex gold was last up $5.50 at $1,118.20 an ounce. September Comex silver was last up $0.077 at $15.29 an ounce.
Gold prices were sporting modest gains and then extended those gains when the Empire State manufacturing survey came in at a much worse-than-expected reading of -14.9 in August from plus 3.86 in July. A reading of plus 4.5 was expected in August. A number above zero indicates growth.
Gold gave back a bit of its early price gains as the U.S. trading session progressed, but still ended moderately higher on the day.
There is still some safe-haven demand for gold following last week’s devaluation of the Chinese yuan against the U.S. dollar. There are ongoing worries about the health of the Chinese economy, which is the world’s second-largest. Economic and political troubles in Brazil—the world’s seventh-largest economy--are also moving closer to the front burner of the market place.
Gold scored gains despite bearishly postured “outside markets” on this day. Nymex crude oil futures were lower and are hovering near a 6.5-year low that was scored last week. Notions of a world oil glut were bolstered by the Baker Hughes U.S. oil rig count, which was reported on Friday, climbing for the fourth straight week. The other outside market saw the U.S. dollar index firmer Monday. Trading in the dollar index has been choppy recently.
The big data point of the trading week is likely to be Wednesday’s release of the FOMC minutes from last month’s meeting. Traders and investors will be looking for further clues on the precise timing of the expected upcoming U.S. interest rate hike. The U.S. consumer price index is also due out Wednesday and will be closely scrutinized.
The London P.M. gold fix is $1,118.80 versus the previous A.M. fix of $1,117.30.
Courtesy: Kitco News