Gold Review

Gold Review 

Gold started a shortened holiday week with little change as the U.S. Dollar fluctuated against majors currencies. Gold futures for August delivery settled down 30 cents at $940.70 an ounce on the Comex division of the New York Mercantile Exchange. Without release of any significant economy data, Monday’s trading session was quiet and range-bound with the market unwilling to make a move on either direction. An unchanged Dollar failed to increase demand for the yellow metal as a safe haven investment.

A slightly higher Dollar early in the day put some selling pressure on Gold after China’s chief central banker ruled out any sudden change in its policy on foreign exchange reserves. Gold typically moves inversely to the U.S. currency, as investors tend to rely on it as a hedge against inflation.

Bullion’s price has recently moved in a broad range between $915 and $945 an ounce and is expected to continue to move sideways throughout this shortened week. Bullion investors will be looking for signals from the U.S. nonfarm payrolls report on Thursday as well as from consumer sentiment and manufacturing for clearer signs on the direction of the economy. As key interest rates are one of the most important driver of the precious metal the expected data from the US economy this week could help indicate the chances for a rate hike and thus shed some light on gold’s ability to move higher in the near future

Chart: Gold Daily

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