Aug 14 (Reuters) - Gold was near a more than five-week low on Monday, hurt by an elevated dollar and U.S. bond yields ahead of the Federal Reserve’s July meeting minutes this week that could shed light on the appetite for higher interest rates.
Spot gold was little changed at $1,913.50 per ounce by 1027 GMT, hitting its lowest level since July 7. U.S. gold futures were mostly flat at $1,946.00...[LINK]
With the gold market falling below its 200-day moving average last week, the dollar index rising above its 200-day moving average last Friday, and the dollar managing to strengthen despite mixed to slightly softer US data, outside market forces look to remain a direct pressure on gold and silver prices.
Surprisingly, with growing signs of a loss of momentum in the US jobs market and signs of lingering inflation, the dollar remains in favor which in turn puts the gold and silver markets "out of favor".
Even though gold and silver ETF holdings saw pattern-breaking inflows last Friday, gold holdings last week fell by 141,157 ounces while silver holdings declined by 2.7 million ounces highlighting ongoing investor skittishness toward the instruments...[MORE]
Please subscribe to receive the full report via email by clicking here.
With a fresh lower low for the move the path of least resistance looks to remain down with today's US PPI report likely to result in the same price reaction as was seen following the US CPI report yesterday.
Certainly, seeing ETFs push money into gold is a positive but we do not detect a full shift in market sentiment in favor of the bull camp.
However, gold and silver might benefit from a generally weaker dollar which partially offsets negative spillover from overnight declines in global equities...[MORE]
Please subscribe to receive the full report via email by clicking here.
Aug 11 (Reuters) - Gold prices on Friday were on track for their worst week in seven, hurt by an overall stronger dollar and elevated bond yields as investors digested the latest U.S. inflation numbers and awaited for more economic data later in the day.
Spot gold rose 0.3% to $1,917.73 per ounce by 1037 GMT, after touching its lowest level since July 7 earlier. U.S. gold futures edged up 0.1% to $1,950.20...[LINK]
Aug 10 (Reuters) - Gold firmed on Thursday buoyed by a softer dollar but was hemmed into a relatively tight range as traders positioned for U.S. inflation readings that could steer the Federal Reserve’s monetary policy.
Spot gold rose 0.4% to $1,921.32 per ounce by 1125 GMT, bouncing up slightly after touching its lowest level since July 10 on Wednesday. U.S. gold futures edged up 0.2% to $1,954.60...[LINK]
While yesterday was a very discouraging day for gold and silver bulls, today does not look to be an improvement.
In fact, with the world largely accepting the likelihood of Chinese deflation and the Chinese economy capable of exporting deflation, (overnight Chinese producer prices declined by 4.4% following a 5.4% decline in the previous month) should leave physical commodities out of favor.
Not surprisingly gold ETF holdings fell again yesterday for the 12th straight session while silver ETF holdings dropped for a 5th straight session...[MORE]
Please subscribe to receive the full report via email by clicking here.