Gold back in the Red After Dismal Week

Big 5

Gold got back to its losing ways after last week’s positive finish, slipping on Monday as traders and central bankers continue to assess the threat of rising interest rates and as a buildup of Russian forces near Ukraine stoke global jitters.

At last check, gold for December delivery GC, -0.72% was down $2.30 to $1,277.90 an ounce. September silver SIU4, -0.21% was off 3 cents at $19.36 an ounce.

New home sales for July is one of the more important reports this week, and it will hit at 10:00 a.m. Eastern. The Dallas Fed manufacturing survey follows a half hour later. Later this week, traders will pore over the second estimate of second quarter GDP.

Gold prices closed Friday on a positive note, but still finished with a 2% loss for the week. That’s the worst week performance in a month, with government data spurring concerns that the Fed may determine the economy fit to handle a hike in interest rates.

Eugen Weinberg of Commerzbank doesn’t see the selling pressure alleviating any time soon.

“While the firm U.S. dollar is still weighing on the gold price, the fact that gold has now fallen below the 200-day moving average is likely to prevent its price from recovering,” he said. “Following disappointing Chinese figures, Indian gold demand also appears to be still failing to gather pace, as the low local premiums illustrate.”

Elsewhere in metals trading, October platinum PLV4, +0.20% rose $3.20 to $1,421.70 an ounce, while September palladium PAU4, -0.37% lost $3.65 cents to $883.90 an ounce. High-grade copper for September delivery HGU4, -0.11% was flat at $3.21 a pound.

Source: MarketWatch

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