Gold prices ended the U.S. day session modestly lower Monday. Lower crude oil prices and a higher U.S. dollar index helped depress gold and silver prices. December Comex gold was last down $3.20 an ounce at $1,273.70. December Comex silver was last up $0.029 at $17.825 an ounce.
The key outside markets on Monday saw Nymex crude oil prices sharply lower and hitting a four-week low. Prices were poised to close at a technically bearish monthly low close Monday. Reports said a weekend meeting between Iran and Iraq produced no results on how OPEC can put together an oil-production-cut package. Recently weaker oil prices have weighed on world stock markets and the precious metals. Meantime, the U.S. dollar index was firmer and trading not far below its recent 8.5-month high.
(Bloomberg) Gold fell for the first time in three sessions as investors weighed the possibility of an impending Federal Reserve interest rate increase and new uncertainties related to the U.S. presidential campaign. While Federal Reserve policy makers are gathering this week, investors do not expect them to alter course before the Nov. 8 U.S. election. The odds of a hike announcement this week are 16 percent, and rise to 71 percent in December, according to Fed Fund Futures. Higher rates reduce the appeal of gold, which doesn’t pay interest or offer returns like bonds and equities.
Trading activity in gold and silver was subdued in September as prices fell, said the London Bullion Market Association. The value of gold transferred last month dropped to $22.6 billion, down more than 10% from the previous month. Although the number of transfers increased to 2,777, up 1.5% from August, the number of ounces per transfer actually fell 10.6% to 6,134, according to the LBMA.
Reference: Kitco,Bloomberg
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