Gold Backs Off On Profit Taking, But Bullish Outside Markets Limit the Downside

Published: Jun 21, 2016 08:58

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Gold prices ended the U.S. day session moderately lower Monday, as investor risk appetite has up-ticked to start the trading week.

Monday June 20, 2016 13:13

(Kitco News) - Gold prices ended the U.S. day session moderately lower Monday, as investor risk appetite has up-ticked to start the trading week. Some profit taking from recent gains also weighed on the safe-haven metal. Last week gold prices hit a two-year high. August Comex gold was last down $4.80 an ounce at $1,290.00. July Comex silver was last up $0.099 at $17.51 an ounce.

The key “outside markets” on Monday saw the U.S. dollar index lower and Nymex crude oil prices higher. That’s a bullish daily element for the precious metals that did limit selling interest in them.

Risk appetite is on the upswing early this week, as U.S. and world stock markets were solidly higher Monday. However, with focus squarely on Thursday’s U.K. vote on whether that country stays in or leaves the European Union, look for traders and investors to scale back their risk-on behavior as Thursday’s vote approaches. The latest polls show a slight lead for the “stay” camp, and that caused world stock markets to rally Monday. However, the polls are close, which is still causing some uncertainty and anxiety in the marketplace. A U.K. vote to leave the EU would likely create high uncertainty and tensions in world stock, currency and financial markets. Thursday’s vote could be the most important world markets event of the summer.

There was no major U.S. economic data due for release Monday.

Source:Kitco

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