Author: Paul Ploumis19 May 2015 Last updated at 06:55:37 GMT
(Kitco News) - Gold ended the U.S. day session with modest gains and scored a three-month high Monday, which bulls considered a significant victory given the strong gains in the U.S. dollar index on this day. Technical chart consolidation was featured following recent gains. Silver prices reached a nearly four-month high Monday. June Comex gold was last up $1.40 at $1,226.70 an ounce. July Comex silver was last up $0.147 at $17.71 an ounce.
The key outside markets saw the U.S. dollar index post a good corrective bounce from recent selling pressure that drove the index to a four-month low late last week. This did limit buying interest in the precious metals today. Nymex crude oil prices traded near steady Monday as prices hover near $60.00 a barrel.
Weekend reports in the European press said Greece is precariously close to defaulting on its sovereign debt obligations to the European Union and the International Monetary Fund. The reports said Greece’s big debt payment to the IMF earlier this month was mainly funds used from an emergency IMF lending fund. Other reports said that Greece-EU/IMF debt negotiations are not going well at all. This news is likely prompting some fresh investor demand for safe-haven gold and giving a lift to the recently beaten up U.S. dollar index.
There continues to be debate in the market place about the health of the U.S. economy—namely at what pace it is growing. Recent mixed U.S. economic reports have added fuel to the debate. There is a large contingent of market watchers that believe the U.S. economy is not growing fast enough to warrant a Federal Reserve interest rate hike this year—even though the central bank has indicated it wants to raise rates this year. Wednesday afternoon’s release of the minutes of the latest FOMC meeting will be very closely examined by traders and investors. This report could be the most important new element for the markets this week.
The London P.M. fix is $1,223.50 versus the previous A.M. fixing of $1,228.15.
Courtesy: Kitco News