Gold price began the week with a modest loss


The gold price climbed $4.00 to $1,502 per ounce Tuesday amid broad-based strength in the commodity complex. The price of gold has fallen for three consecutive sessions in dropping below the psychologically-important $1,500 per ounce level. Silver rebounded alongside gold, gaining over 1% to $34.01 per ounce. Crude oil and copper rose 1.6% and 0.8% to $$92.09 per barrel and $4.10 per pound, respectively.


The gold price began the week with a modest loss, falling $7.27, or 0.5%, to $1,495.37 per ounce. The sell-off in the price of gold developed as indications that a widespread European sovereign debt crisis could be avoided. Silver dropped alongside the gold price, sinking $0.76, or 2.2%, to $33.55 per ounce.




While the gold price moved lower, gold equities held up. The AMEX Gold Bugs Index (HUI) hovered near unchanged, before settling fractionally lower at 500.77. Barrick Gold (ABX), the world’s largest gold miner, advanced 0.3% to $43.16 per share, while Goldcorp (GG) dipped 0.2% to $46.74 per share. Gold and silver mining stocks moved higher across the board Tuesday morning as buoyant gold prices and firm equity markets supported the sector.




In Europe, French banks agreed to roll over Greek debt two days ahead of a critical vote in Greece’s parliament on austerity measures – a requirement of additional aid from the European Union and International Monetary Fund. By reinvesting in new Greek debt over a 30-year time frame, policymakers hope to alleviate the pressure on Greece to repay investors. French bondholders are more exposed to Greek debt than any other euro-zone nation, at €350 billion in holdings.




Financial markets cheered the Greek news and the euro has risen over 1% to 1.43 against the U.S. dollar over the past 24 hours. Despite today’s gains, the gold price is now lower by 2.4% in June and is on pace for consecutive monthly declines for the first time since December 2009-January 2010.

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