Gold Ends Lower on Better Investor Risk Appetite and Stronger U.S. Dollar-Shanghai Metals Market

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Gold Ends Lower on Better Investor Risk Appetite and Stronger U.S. Dollar

Industry News 11:05:09AM Aug 20, 2014 Source:SMM

Author: Paul Ploumis19 Aug 2014 Last updated at 06:43:01 GMT

(Kitco News) - Gold prices ended the U.S. day session moderately lower Monday and saw pressure from an improved risk appetite in the market place and by the recently stronger U.S. dollar. December Comex gold was last down $7.20 at $1,299.00 an ounce. Spot gold was last quoted down $6.50 at $1,298.50. December Comex silver last traded up $0.10 at $19.69 an ounce.

There was less risk aversion in the market place Monday, as evidenced by generally higher stock markets worldwide, including good rallies in the U.S. stock indexes Monday. Weekend news saw a meeting between Germany, Russia, Ukraine and France, regarding a implementing a cease-fire between Russian-backed separatists and Ukrainian troops. The lack of an escalation in tensions in any of the geopolitical hotspots somewhat assuaged the market place to start the trading week. Still, U.S. Treasury yields that are dropping and record-low German bond yields suggest there remains overall heightened investor/trader uncertainty in the market place.

Traders and investors are awaiting this week’s annual Kansas City Federal Reserve meeting in Jackson Hole, Wyoming, that begins Thursday. The confab of world central bankers has in the past yielded important U.S. monetary policy speeches and clues to the direction of monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are scheduled to speak in Jackson Hole. Before the Jackson Hole event comes the Federal Reserve’s FOMC minutes on Wednesday afternoon, which as usual will be closely scrutinized.

The London P.M. gold fix was $1,296.75 versus the previous P.M. fixing of $1,302.75.

Technically, December gold futures prices closed nearer the session low Monday. Gold bulls and bears are still on a level overall near-term technical playing field but the bulls are fading. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,324.30. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the August low of $1,281.00. First resistance is seen at Monday’s high of $1,304.90 and then at $1,310.00. First support is seen at Monday’s low of $1,296.50 and then at last week’s low of $1,293.00. Wyckoff’s Market Rating: 5.0.

Courtesy: www. kitco.com

 

Gold Ends Lower on Better Investor Risk Appetite and Stronger U.S. Dollar

Industry News 11:05:09AM Aug 20, 2014 Source:SMM

Author: Paul Ploumis19 Aug 2014 Last updated at 06:43:01 GMT

(Kitco News) - Gold prices ended the U.S. day session moderately lower Monday and saw pressure from an improved risk appetite in the market place and by the recently stronger U.S. dollar. December Comex gold was last down $7.20 at $1,299.00 an ounce. Spot gold was last quoted down $6.50 at $1,298.50. December Comex silver last traded up $0.10 at $19.69 an ounce.

There was less risk aversion in the market place Monday, as evidenced by generally higher stock markets worldwide, including good rallies in the U.S. stock indexes Monday. Weekend news saw a meeting between Germany, Russia, Ukraine and France, regarding a implementing a cease-fire between Russian-backed separatists and Ukrainian troops. The lack of an escalation in tensions in any of the geopolitical hotspots somewhat assuaged the market place to start the trading week. Still, U.S. Treasury yields that are dropping and record-low German bond yields suggest there remains overall heightened investor/trader uncertainty in the market place.

Traders and investors are awaiting this week’s annual Kansas City Federal Reserve meeting in Jackson Hole, Wyoming, that begins Thursday. The confab of world central bankers has in the past yielded important U.S. monetary policy speeches and clues to the direction of monetary policy. Fed Chair Janet Yellen and ECB President Mario Draghi are scheduled to speak in Jackson Hole. Before the Jackson Hole event comes the Federal Reserve’s FOMC minutes on Wednesday afternoon, which as usual will be closely scrutinized.

The London P.M. gold fix was $1,296.75 versus the previous P.M. fixing of $1,302.75.

Technically, December gold futures prices closed nearer the session low Monday. Gold bulls and bears are still on a level overall near-term technical playing field but the bulls are fading. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the August high of $1,324.30. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the August low of $1,281.00. First resistance is seen at Monday’s high of $1,304.90 and then at $1,310.00. First support is seen at Monday’s low of $1,296.50 and then at last week’s low of $1,293.00. Wyckoff’s Market Rating: 5.0.

Courtesy: www. kitco.com