By Paul Ploumis (ScrapMonster Author)
November 03, 2015 02:26:09 AM
Gold futures prices closed moderately lower on US day session Monday.Gold Weaker, Hits 4-Week Low, as Bears Back in Near-Term Technical Control
(Kitco News) - Gold futures prices ended the U.S. day session moderately lower and scored a four-week low Monday. Perceived higher odds of a U.S. Federal Reserve interest rate hike in December are bearish for the precious metals. The gold and silver markets have been reeling since last week’s hawkish FOMC statement. Technical selling pressure has also increased the past few sessions as the near-term chart postures for both gold and silver are again favoring the bears. December Comex gold was last down $5.50 at $1,135.90 an ounce. December Comex silver was last down $0.127 at $15.44 an ounce.
More downside economic data coming out of China Monday also worked in favor of the precious metals and raw commodity market bears. The Caixin China manufacturing purchasing managers’ index (PMI) rose to 48.3 in October from 47.2 in September. A reading below 50.0 suggests contraction in the sector. China’s other PMI report from the government came in at 49.8 in October, which was unchanged from the September figure. China is the world’s largest raw commodity importer and its weakening economy likely means less raw commodity imports.
Meantime, the Euro zone PMI was a bit upbeat and came in at 52.3 in October versus 52.0 in September. A number of 52.0 was the consensus forecast.
The U.S. manufacturing PMI for October came in at 50.1 versus 50.2 in September. That number was the lowest in over two years. The major economies’ PMI reports today also suggest there are still valid concerns about worldwide price deflation. That’s also a negative for the precious metals markets.
Courtesy: Kitco News
