News Column

Gold Levels Off After Big Gains Last Week

June 23, 2014

WASHINGTON (Alliance News) - Gold prices are lower Monday morning following some profit taking after last week's gains. Investors are also awaiting data on US manufacturing activity and retail sales.

However, worries about the situation in Iraq where militants have reportedly seized more cities in the northern part of the country appear to be limiting bullion's losses.

Gold futures for August are down USD4.60 or 0.35% at USD1,312 an ounce.

On Friday, gold futures ended up USD2.50 or 0.2% at USD1,316.60 an ounce, extending gains to a third successive session. For the week, gold gained 3.3%.

The Federal Reserve's pledge to hold rates at a record low for an extended period of time and the ongoing violence in Iraq contributed to gold's upmove.

Silver for September is down USD0.144 or 0.69% at USD20.850 an ounce.

Meanwhile copper is up USD0.023 or 0.75% at USD3.136 per pound amid hopes of increased demand following a better than expected reading on Chinese manufacturing activity.

On the economic front, Markit will release the results of its preliminary manufacturing survey for the US at 9:45 am ET. Economists expect the manufacturing purchasing managers' index to rise to 56.5 in June from 56.2 in May.

At 10 am ET, the National Association of Realtors will release its existing home sales data for May. The consensus estimate calls for existing home sales to come in at a seasonally adjusted annual rate of 4.75 million units compared to a 4.65 million unit-annual rate in April.

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Source: Alliance News

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