• Gold prices settled lower on Monday, after an earlier attempt to rebound. Prices briefly traded as high as$1,258.90 intraday, before finishing with their first loss in three sessions. "Technical resistance at $1,260 is still playing a major role in the price action for gold futures but intraday, it was the headlines of Chinese troop deployments to the North Korean border that spooked markets and once again spurred a geopolitical fear bid in gold," said Tyler Richey, co-editor of the Sevens Report.
• June gold GCM7, +0.29% fell $3.40, or 0.3%, to settle at $1,253.90 an ounce.
• The yellow metal’s latest moves come after it traded around a five-month high at $1,273.30 an ounce on Friday, drawing haven bids, in the wake of the U.S.’s airstrike against Syria, but subsequently pulled back as worries about the military action, which threatened to stoke geopolitical angst, abated.
• “Gold has been trending higher so far in 2017, but the rally has met solid resistance at the $1,260 mark, failing to close above that level after multiple tests including in the wake of the Syrian missile strike and soft headline in the March jobs number late last week,” said Richey.
“The combination of range-bound interest rates, a sideways dollar, and continued resiliency in the stock market, while inflation remains ‘in check’, has been cause for a pause in the 2017 gold rally,” he told MarketWatch.
“Looking ahead, the next move in gold will largely remain a function of investor sentiment and what stocks, the dollar, and interest rates do,” said Richey. On Monday, U.S. equities were trading mostly higher when gold futures settled.
• “Risk-on trading and a retest of the recently established all-time highs in stocks will be a headwind for the precious metal, while risk-off, cautious trading will likely propel gold up through the stubborn resistance level at $1,260, with a next upside target being between $1,285 and $1,300” and ounce, Richey said.
• Meanwhile, silver for May delivery SIK7, +0.11% lost 23.6 cents, or 1.3%, to end at $17.915 an ounce.
Reference: Marketwatch,Kitco
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