News Column

Gold Rally Fizzles As Stocks Recover

July 14, 2014

WASHINGTON (Alliance News) - Gold prices are down sharply Monday morning, with traders taking profits after a strong upmove. Appetite for riskier assets is picking up, with traders looking past geopolitical tensions amid rising equities.

Traders are looking ahead to quarterly earnings reports and some crucial speeches by central bank heads due this week.

Gold futures for August are down USD20.10 or 1.50% at USD1,317.30 an ounce, sliding from a 4-month peak.

Gold futures gained 1.3% last week, as renewed worries about the European economy on recent weak data from France and Italy and concerns about Portugal's banking sector prompted investors to seek the safe haven of the precious metal.

Silver for September is down USD0.326 or 1.52% at USD21.135 an ounce. Meanwhile, copper is down USD0.009 or 0.27% at USD3.260 per pound.

According to data released by Eurostat, eurozone industrial production declined 1.1% month-on-month in May, reversing the 0.7% rise in April. Economists expected output to drop 1.2%.

Investors will be looking ahead to European Central Bank President Mario Draghi's speech at the European Parliament in Strasbourg, at 1 pm ET.

During the week, investors will be digesting a slew of economic reports including the data on consumer sentiment, retail sales, manufacturing sector activity and housing market, besides the weekly report on jobless claims.

Some crucial Fed speeches, including Janet Yellen's semi-annual monetary policy testimony to Congress, will be eyed as well.

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Source: Alliance News

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