Gold Sharply Down On Profit Taking, Bearish Outside Markets

By Paul Ploumis (ScrapMonster Author)

May 10, 2016 04:51:04 AM

(Kitco News) - Gold prices ended the U.S. day session sharply lower Monday, pressured by profit taking from recent gains, by weak long liquidation in the futures market, and by better risk appetite in the general marketplace to start the trading week. June Comex gold futures were last down $26.60 an ounce at $1,267.40. July Comex silver was last down $0.437 at $17.09 an ounce.

It was a “risk-on” day in the marketplace Monday, as world stock markets were mostly higher.

Nymex crude oil prices were lower Monday afternoon and trading below $44.00 a barrel. A big wildfire in Canada has stopped oil production in that region, which is a near-term bullish factor for the world oil market. However, a big shake-up in the Saudi Arabian government over the weekend saw its oil minister fired. The move was deemed bearish for oil and makes any near-term crude oil production cuts from Saudi Arabia much less likely. OPEC meets in early June to discuss the matter.

The other key outside market on Monday saw the U.S. dollar index firmer. The very recent rebound in the dollar index has put some selling pressure into raw commodity markets. Still, the overall near-term price trend for the dollar index remains down.

In other overnight news, China’s exports fell 10.9% in April, year-on-year, which was more than expected. Meantime, China’s imports were up 7.6%, year-on-year. China is the world’s second-largest economy and the world’s largest raw commodity importer.

U.S. economic data released Monday was light.

Courtesy: Kitco News