By Paul Ploumis 16 Jun 2015 Last updated at 02:54:42 GMT
(Kitco News) - Gold prices ended the U.S. day session moderately higher Monday. After trading near unchanged in early-morning action, the yellow metal saw a late-morning rally that was fueled by some safe-haven demand due to the Greece debt-talks breakdown. Short covering in the futures market and bargain hunting in the cash market were also featured, helped along by the U.S. dollar index losing its early gains. August Comex gold was last up $7.30 at $1,186.50 an ounce. July Comex silver was last up $0.275 at $16.10 an ounce.
The Greece-EU/IMF debt negotiations that had been ongoing broke down on Sunday. Now, reports say Greece’s prime minister will try to deal directly with European Union leaders on the matter. The next deadline is June 25, on which a meeting in Brussels occurs between European Union leaders. This news has pressured the Euro currency and European stock markets, and given the U.S. dollar index a boost. Greek bond yields pushed higher and are now trading near 28% for the two-year note.
The Federal Reserve’s Open Market Committee (FOMC) begins its meeting on U.S. monetary policy Tuesday. The meeting ends Wednesday with an FOMC statement followed by a press conference from Fed Chair Janet Yellen. Most market watchers do not expect the FOMC to raise interest rates at the June meeting, but instead do so in September or later. Still, the FOMC statement and Yellen press conference will be very closely scrutinized by the market place, and market price action could become very active in the immediate aftermath of the meeting.
The market place will keep a close eye on U.S. and German bond markets this week, after the recent beating both have taken. Early Monday, German and U.S. bond prices were a bit firmer.
The London P.M. fix is $1,178.25 versus the previous A.M. fixing of $1,182.80.
Courtesy: Kitco News