Gold Starts off Busy Earnings, Data Week in The Red

Gold prices dipped on Monday, failing to maintain the prior session’s momentum heading into a busy week of corporate earnings and economic data, including a key meeting of the Federal Reserve in the coming days.

At last check, gold for December delivery GCZ4, -0.19% lost 90 cents to $1,230.90 an ounce. December silver SIZ4, -0.10% gave up a penny to $17.17 an ounce.

In the previous session, gold put an end to a two-day losing streak after increased Ebola concerns sent investors to seek the perceived safety of the precious metal. But a better-than-expected reading of a stress test exercise for European banks is weighing on prices.

On the economic front, pending home sales hit at 10:00 a.m. Eastern, followed by the Dallas Fed manufacturing survey for October a half hour later. Third-quarter GDP and word from the Fed will take top billing later in the week.

Russell Browne, a strategist at Scotiabank, pointed out that gold is trading below its nine-week moving average and sits at a precarious level.

“We note that momentum indicators remain modestly bearish,” he said. “Key downside levels include $1,220 and $1,200 and $1,245 remains an important level of near term resistance.”

Elsewhere in the metals group, January platinum GCZ4, -0.19% added $2.60 to $1,235.50, while December palladium PAZ4, -0.02% tacked on 40 cents to $781.30 an ounce. High-grade copper for December delivery HGZ4, -0.21% eked out a penny gain to $3.03 a pound.

Source: MarketWatch