By Paul Ploumis 29 Sep 2015 Last updated at 05:46:29 GMT
(Kitco News) - Gold ended the U.S. day session lower Monday as prices have given back most of last week’s gains. The yellow metal saw no significant safe-haven demand despite a sell-off in most world stock markets Monday, including sharp losses in the U.S. stock indexes.
Also bearish for the precious metals are ideas a strengthening U.S. economy will support a continued rise in the value of the U.S. dollar—even though the dollar index was weaker on this day. December Comex gold was last down $13.60 at $1,132.00 an ounce. December Comex silver was last down $0.566 at $14.545 an ounce.
Most major world stock markets saw seeing selling pressure to start the trading week. More downbeat economic data coming from China, the world’s second-largest economy, in part spurred the downside price action in equities markets. Industrial profits in China were reported down 8.8% in August, from a year ago. China’s Shanghai stock index was slightly higher on the day, however.
The marketplace is still obsessed with the timing of the next interest rate hike from the U.S. Federal Reserve. Remarks from Fed Chair Janet Yellen late last week fell into the hawkish monetary policy camp, as Yellen appeared to lay out a case for a U.S. Fed funds rate rise yet this year. Recent upbeat U.S. economic data, including last Friday’s stronger-than-expected GDP report, also fall into the camp of monetary policy hawks and U.S. dollar bulls. Federal Reserve Bank of New York President William Dudley chimed in Monday, saying he, too, thinks the Fed will raise interest rates yet this year.
In other overnight news, reports said the government of Switzerland is investigating seven major banks that may have manipulated the price of gold, silver and other precious metals. The focus is on the spreads between the bid and ask prices for the metals.
China’s gold imports from Hong Kong and Switzerland doubled in August versus the year-ago period. Demand for gold coming from India was also strong, said the report that was issued by Barclays Monday.
The London P.M. gold fix today was $1,131.05 versus the previous London A.M. fixing of $1,137.50.
Courtesy: Kitco News