Gold Prices Slip Amid European Reopenings, Dollar Strength


© Reuters.

By Geoffrey Smith 

Investing.com — Gold prices slipped on Monday as signs of economic life in Europe encouraged a friendlier tone towards risk assets and dampened demand for havens.

By 9:26 AM ET (1326 GMT), for delivery on the Comex exchange were down 0.5% at $1,726.85 a troy ounce, while was down 0.4% at $1,727.97.

With European equity markets buoyant and with simmering tension between the U.S. and China keeping the dollar well bid, gold has been under pressure for most of the day.

Nick Frappell, general manager of ABC Bullion in Sydney, said in a weekly preview Monday that he expects it to drift down to support around $1,710-1,712 in the short term, testing  the current pennant formation and possibly paving the way for a bullish breakout.

were also down, by 0.7%, at $17.58 an ounce, after data from the Commodity Futures Trading Commission showed that net speculative long positions hit their highest since early April last week.

were down 0.1% at $885.85 an ounce.

Gold was supported moderately by sustained doubts about the fate of a Franco-German proposal for the EU to borrow in its own name and distribute grants to member states worst hit by the coronavirus. Analysts have said the proposal, if accepted, could be a game-changer for the assessment of sovereign risk in the euro zone, by signalling a greater willingness to support poorer and more highly-indebted countries.

However, the loose coalition of the Netherlands, Finland, Austria and Sweden over the weekend issued a critical response to the proposal, insisting that aid be distributed in the form of loans rather than grants. Paul Donovan, chief economist with UBS Global Wealth Management, said in a morning note that he expects the final compromise to resemble the Franco-German proposal more. The EU Commission is due to produce its own proposals later this week.

READ  COVID-19 pandemic to hit MSME exporters more: Trade experts
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here