Gold prices were ending the U.S. day session modestly lower Tuesday. Sharply lower crude oil prices weighed on the raw commodity sector, including the precious metals markets, today. Also, safe-haven gold continues to see limited buying interest amid generally optimistic trader and investor attitudes the past three weeks. The gold and silver charts are also firmly in the bearish technicals camp. February Comex gold was last down $2.10 an ounce at $1,191.50. March Comex silver was last up $0.08 at $16.755 an ounce.
Some upbeat U.S. economic data released Tuesday morning had little impact on the precious metals markets. Third-quarter GDP beat market expectations at up 3.2%, year-on-year, while consumer confidence took a big jump in November from October.
Global exchange-traded-fund holdings have now fallen for 12 business days in a row, reports Commerzbank. The ETFs trade like a stock but track the price of the commodity, with metal put into storage to back the shares. Recent ETF outflows have been “sizeable” and continued on Monday, say Commerzbank analysts. “At 6.3 tonnes, the gold ETFs tracked by Bloomberg saw their 12th daily outflow in a row,” the bank says. “Their holdings were reduced by over 116 tonnes during this period, putting them at their lowest level since the end of June.”
Some major U.S. economic reports, plus political risk, will be key focuses for the gold market this week, says HSBC. U.S. data include nonfarm payrolls on Friday, consumer confidence on Tuesday and the Institute for Supply Management survey Thursday, among others. “There is also a degree of political risk that may move gold,” HSBC says. “Pier Carlo Padoan, Italy’s finance minister, said the markets were right to be perplexed about the prospect of a government defeat in the Dec. 4 constitutional referendum. The prime minister, Matteo Renzi, also warned of a possible early election in the event of a ‘no vote.’ This may inject enough political concern to buoy gold.”
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