Gold Ends Near Steady; Morning Gains Cannot Be Held

 

(Kitco News) - Gold prices ended the U.S. day session near steady Monday, and gave back morning gains that saw prices poke above $1,200.00. The precious metals once again felt the negative effects of bearish outside markets—a stronger U.S. dollar index and weaker crude oil prices. The near-term technical postures for both gold and silver remain bearish, which are also inspiring some chart-based selling. August Comex gold was last down $0.40 at $1,189.40 an ounce. July Comex silver was last up $0.004 at $16.705 an ounce.

 

The U.S. dollar index was sharply higher Monday afternoon, after choppy morning trading, in part due to safe-haven demand amid the Greek debt situation that appears not to be significantly improving—despite unfounded rumors Monday that a deal had been reached between the two negotiating parties. Some upbeat U.S. manufacturing data Monday morning gave the U.S. dollar a fresh boost after an intra-day sell off.

 

The other key “outside market” saw crude oil prices lower. On tap late this week is a key OPEC oil cartel meeting. Crude oil prices are in a down-trending channel on the daily bar chart.

 

Gold did see a short-lived rally to push prices above $1,200.00 an ounce in morning dealings, following a downbeat U.S. personal spending report and some dovish comments from a U.S. Federal Reserve official Monday morning.

 

Reports overnight said weekend meetings between Greece and its European Union/International Monetary Fund creditors produced no agreement on a Greek debt-restructuring package, but progress was made. An EU official now says the deadline for a debt deal with Greece is the end of June. There are still many European market watchers that believe Greece will default on its sovereign debt obligations.

 

It’s an important week for world economic news. The ECB meets Wednesday for its regular monetary policy meeting. And the big U.S. economic report of the week will come with Friday’s U.S. jobs report from the Labor Department.

 

The London P.M. fix is $1,199.90 versus the previous A.M. fixing of $1,187.30.

 

Courtesy: Kitco News