Gold Sees Short-Covering, Bargain Hunting Rebound Monday

Author: Paul Ploumis
09 Jun 2015 Last updated at 02:59:46 GMT
(Kitco News) - Gold prices ended a quieter U.S. day session with modest gains Monday, on some short covering in the futures market and some bargain hunting in the cash, after prices dropped to a 2.5-month low last Friday. The bearish chart postures for both gold and silver markets are still keeping buyers very tentative. August Comex gold was last up $5.20 at $1,173.30 an ounce. July Comex silver was last down $0.034 at $15.96 an ounce.

The U.S. dollar index traded solidly lower Monday, which was also a bullish “outside market” force working in favor of the precious metals bulls.

In overnight news, there was another downbeat economic report coming out of China Monday. China’s overall exports were down 2.5% in May, year-on-year, while imports were down 17.6% during the same period. The report helped to put some selling pressure into the other outside market: crude oil. China is the world’s largest importer of raw commodities. This news was a negative for the metals that did limit gains in gold and silver today.

Reports overnight said Greece is awaiting EU/IMF creditors’ response to its draft proposal on Greece’s debt restructuring. June 30 is now seen as the latest deadline for a deal to be reached. This situation is a classic “kick the can down the road” scenario that appears to be delaying the obvious: a payment default by Greece.

The London P.M. fix is $1,172.80 versus the previous A.M. fixing of $1,173.40.

Courtesy: Kitco News