Gold Ends Slightly Up on Corrective Bounce from Recent Downside Pressure

By Paul Ploumis (ScrapMonster Author)

October 27, 2015 05:37:56 AM

(Kitco News) - Gold prices finished the U.S. day session slightly higher Monday, on a rebound from the selling seen late last week that produced a technically bearish weekly low close on Friday. The gold bulls had faded recently and Monday’s even modest lift was much-needed for them. December Comex gold was last up $1.50 at $1,164.30 an ounce. December Comex silver was last up $0.058 at $15.89 an ounce.

A lower U.S. dollar index to start the trading week was also a mildly bullish “outside market” force working in favor of the precious metals bulls. The other outside market saw crude oil prices weaker Monday, as the oil bears have some technical momentum on their side.

A weak U.S. housing market report on Monday helped to pressure the U.S. dollar.

In overnight news, the closely watched German Ifo business conditions index fell to 108.2 in October from 108.5 in September. However, the number was higher than forecasters expected. The Euro currency saw a modest recovery after a big sell off Friday that drove prices to a 2.5-month low.

European stock markets saw a downside correction Monday, following Friday’s gains that were inspired by an unexpected easing of monetary policy by China’s central bank, and by dovish comments from European Central Bank President Mario Draghi last Thursday. Asian stock markets were mostly firmer Monday, in the wake of the China central bank cutting its interest rates last Friday.

This is an extra important week for the marketplace. Featured is the Federal Reserve’s FOMC monetary policy meeting that begins on Tuesday and ends Wednesday afternoon. Also, the big Chinese government five-year planning meeting began on Monday and lasts until Thursday.

Courtesy: Kitco News