By Paul Ploumis 04 Aug 2015 Last updated at 03:47:56 GMT
(Kitco News) - Gold prices ended the U.S. day session moderately lower Monday. The key “outside markets” were in a bearish posture for gold and silver on this day, as the U.S. dollar index was firmer and crude oil prices were solidly lower. Bearish technical charts and a slumping raw commodity sector, in general, are also keeping gold and silver buyers scarce. December Comex gold was last down $5.80 at $1,089.30 an ounce. September Comex silver was last down $0.30 at $14.445 an ounce.
Nymex crude oil prices slid to a four-month low on some downbeat China economic news and on reports U.S. oil rigs in operation are on the rise again. Brent crude oil futures fell below $50 a barrel for the first time since January. Copper and aluminum prices fell to six-year lows Monday, on the weak China economic data. The raw commodity sector is in a bad way, at present, with no clues of a turnaround coming anytime soon.
The U.S. dollar index was firmer Monday, supported on ideas Friday’s U.S. jobs report for July will be upbeat for U.S. economic prospects, which in turn would favor the Federal Reserve raising interest rates sooner rather than later. The important non-farm jobs component of the report is expected to show a rise of 215,000 in July. However, the dollar index’s gains were pared Monday on a downbeat U.S. ISM manufacturing report.
There was some of risk aversion in the world market place Monday, on the disappointing economic news coming out of China. The Caixin manufacturing purchasing managers’ index (PMI) fell to 47.8 in July from 49.4 in June—the lowest level in two years. A number under 50.0 indicates contraction in the sector.
Greece’s stock market reopened Monday for the first time in five weeks, and was down 17%. Reports said that market would be down even more Monday, were it not for restrictions on trading by local Greek traders. While not seriously impacting the world market place, the plunge in the Greek stock market combined with the weak China data to give many traders and investors pause to start the business week.
Reports from China say consumer demand for gold has increased significantly recently, what with the big sell-off in the Chinese stock market and gold prices at a 5.5-year low.
While it’s a busy week for U.S. economic data, including Friday’s jobs report from the Labor Department, many traders and investors are likely focusing on family vacations in August, before the start of the new school year. European market activity slows way down during most of the month of August. The market place is likely to be generally quieter until after the U.S. Labor Day holiday in early September.
The London P.M. gold fix is $1,091.90 versus the previous A.M. fix of $1,093.00.
Courtesy: Kitco News