Gold Backs Off On Profit-Taking, Bearish Outside Markets

By Paul Ploumis (ScrapMonster Author)

March 15, 2016 01:41:28 AM

(Kitco News) - Gold prices ended the U.S. day session solidly lower Monday, on a corrective and profit-taking pullback following Friday’s push to a 13-month high. Improved risk appetite in the marketplace early this week is a bearish element for safe-haven gold. April Comex gold was last down $16.30 at $1,243.00 an ounce. May Comex silver was last down $0.105 at $15.50 an ounce.

The key “outside markets” were also in a bearish posture for the precious metals markets today, as the U.S. dollar index was higher and crude oil prices were lower.

Global stock markets were mostly higher Monday, as investor risk appetite in the market place has returned, at least on this day.

Arguably the most important data point of the week will be the U.S. Federal Reserve’s Open Market Committee (FOMC) meeting that begins Tuesday and ends Wednesday afternoon with a statement and a press conference from Fed Chair Janet Yellen. No changes in U.S. monetary policy are expected at this meeting, but as always traders and investors will be closing parsing the FOMC statement for clues on Fed policy moves in the coming weeks or months. The market place believes there is about a 50-50 chance the Fed will raise U.S. interest rates at its June meeting.

In overnight news, January industrial production in the Euro zone rose by 2.1% month-on-month and was up 2.8% year-on-year, which was the best reading in six years. Still, the Euro currency was weaker on the day.

There was no major U.S. economic data due for release Monday but the report pace picks up significantly on Tuesday and the rest of this week.

Courtesy: Kitco News