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Gold Sees Short Covering, Bargain Hunting After Recent Selling Pressure
May 5,2015 16:52CST
industry news
Source:SMM
Gold prices ended the U.S. day session moderately higher Monday, on a short-covering rebound in the futures market and on some perceived bargain hunting in the cash market.

Author: Paul Ploumis 05 May 2015 Last updated at 03:39:49 GMT

(Kitco News) - Gold prices ended the U.S. day session moderately higher Monday, on a short-covering rebound in the futures market and on some perceived bargain hunting in the cash market, after prices dropped to a six-week low on Friday. June Comex gold was last up $12.60 at $1,187.10 an ounce. July Comex silver was last up $0.30 at $16.44 an ounce.

The key “outside markets” on Monday saw the U.S. dollar index mixed to firmer on a short-covering bounce after hitting 3.5-month low late last week. Nymex crude oil futures were slightly lower Monday but hovering not far below last week’s high just below $60 a barrel. Oil prices Friday hit a four-month high. There are technical clues the U.S. dollar index has put in a market top and crude oil prices have put in a market bottom. This scenario is good news for the recently beaten down raw commodity sector.

Traders are looking ahead to Friday’s U.S. employment report for April. The key non-farm payrolls number is forecast to come in at up 220,000.

In overnight news, the HSBC China purchasing managers’ index (PMI) came in at 48.9 in April from 49.6 in March. A reading below 50.0 suggests contraction. This news led to more strong speculation that China’s central bank will announce new monetary stimulus measures. Meantime, the Euro zone April manufacturing PMI came in at 52.0 versus 52.2 in March. The April figure was just above market expectations.

Reports overnight said there has been significant progress in the Greece-EU/IMF debt restructuring talks. The reports said a more complete deal could be reached this month or in June.

Japan’s and the U.K’s markets were closed for holidays Monday.

Courtesy: Kitco News
 

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