News Column

Gold Inches Down Near USD1,300 As European Stocks Rally

August 18, 2014

WASHINGTON (Alliance News) - Gold prices are lower Monday morning, with rebounding European equity markets prompting traders to seek riskier assets.

However, recent weak data from the eurozone and lingering geopolitical concerns are limiting the yellow metal's downside.

Gold futures for December are down USD4.10 or 0.31% at USD1,302.10 an ounce.

On Friday, gold futures ended down USD9.50 or 0.7% at USD1,306.20 an ounce, snapping a three-day winning streak, amid some mixed economic data and uncertainty about the timing of likely monetary tightening. Gold shed about 0.37% last week.

Silver for September is up USD0.047 or 0.24% at USD19.572 an ounce. Meanwhile, Copper is up USD0.005 or 0.16% at USD3.108 per pound.

Among the key economic events this week, are the release of data on new home and existing home sales in July, the minutes of the Federal Open Market Committee's July meeting and the report on weekly jobless claims.

The Philadelphia Federal Reserve's manufacturing survey for August, flash estimate of Markit's manufacturing survey for August, consumer price inflation report for July and the Conference Board's economic indicators are also eyed this week.

At 10 am ET, the National Association of Home Builders is scheduled to release the results of its homebuilder confidence survey for August. Economists expect the housing market index for the survey to remain unchanged at 53.

According to data from the eurozone, trade surplus increased unexpectedly in June, rising to EUR 16.8 billion, from EUR 15.4 billion in May, Eurostat reported. Economists had expected the trade surplus to decrease to EUR 15.1 billion.

In its monthly report, Bundesbank said that geopolitical tensions may weigh on Germany's economic outlook.

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Source: Alliance News

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