Gold futures slid for a third day Monday as U.S. stocks and the dollar rallied. Gold for August delivery GCQ6, -0.20% settled down $1.80, or 0.1%, at $1,356.60 an ounce. Meanwhile, silver for September delivery SIU6, -0.22% advanced 20.5 cents, or 1%, to settle at $20.304 an ounce. The S&P 500 Index SPX, +0.34% was last up 0.6% at 2,142, and the U.S. Dollar Index DXY, +0.04% rose 0.3% to 96.59.
In the wake of the United Kingdom leaving the European Union, traders believe that the U.S. Federal Reserve will delay the previously expected July interest rate increase until 2017.
According to the CMEGroup's Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 0 percent for the July meeting, 12 percent at the September 2016 meeting, and 11 percent at the November 2016 meeting, and 32 percent at the December meeting.
Traders are waiting for the Job Openings and Labor Turnover Survey on Tuesday, the Import and Export Prices report on Wednesday, the weekly jobless claims report and producer price index on Thursday, and the retail sales, consumer price index, and industrial production reports on Friday.
Global gold exchange traded funds (ETFs) holdings have increased by more than 500 tonnes since January, reaching a high of over 2,000 tonnes for the first time in three years, according to a report on Monday. ‘Investor gold demand has been prompted by slow global growth, negative interest rates in Europe and Japan, and the unlikelihood of the Federal Reserve raising rates in the near future,’ says Frank Holmes, chief executive officer of U.S. Global Investors. Holmes added that the worst performing precious metal last week was gold, up 1.83 percent. ‘[I]t has been pretty steady as of late marking the sixth consecutive weekly gain,’ Holmes said. Gold prices ended the U.S. day session near steady Monday. Silver futures finished higher and closed at a new two-year high close today.
Reference: Xinhua, KITCO, MarketWatch
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