By Paul Ploumis (ScrapMonster Author)
December 01, 2015 02:37:30 AM
(Kitco News) - Gold prices posted moderate gains Monday on an upside technical correction, some short-covering in the futures market and on some bottom-picking in the cash market. Gold prices last Friday set a 5.5-year low. The still-very-bearish technical postures for gold and silver will likely continue to keep the buyers timid. February Comex gold was last up $9.00 at $1,065.30 an ounce. March Comex silver was last up $0.032 at $14.08 an ounce.
The International Monetary Fund has just Monday added the Chinese yuan to its basket of official IMF reserve currencies. The move was expected and did not move the markets. However, it’s just one more development that shows the growing influence and power of China on the world stage.
There were no major, fresh, markets-moving geopolitical developments for the marketplace to focus upon Monday, which is the last trading day of the month. The start of the Christmas shopping season is getting attention, as Black Friday is being followed by Cyber Monday today.
As the calendar turns to December traders and investors will again start buzzing about the mid-month FOMC meeting, at which time most market watchers believe the Federal Reserve will make its first interest rate increase in nine years.
A report overnight said the raw commodity sector had one of its worst months in around 45 years in November, when examining the Goldman Sachs Commodity Index (GSCI). A major bearish element for the raw commodity sector in recent weeks has been a resurgent U.S. dollar index, which hit a seven-month high Monday. The other “outside market” sees Nymex crude oil prices near steady Monday on mild short covering after hitting a three-month low last week.
On tap later this week is an OPEC oil cartel meeting and the regular meeting of the European Central Bank. The important U.S. jobs report is due out Friday.
Courtesy: Kitco News