Gold futures ended lower on Monday on some largely strong global equity markets prompting investors to seek riskier assets, with a slew of economic data awaited later this week.
Stocks rose on last week’s unexpected rate cut announcement from China’s central bank and on comments from the European Central Bank President Mario Draghi that hinted at prospects of fresh stimulus to prop up the eurozone economy.
Gold for December delivery, the most actively traded contract, slipped $2.00 or near 0.2 percent to settle at $1,195.70 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
Gold for December delivery scaled an intraday high of $1,203.80 and a low of $1,192.20 an ounce.
On Friday, gold futures ended higher at $1,198.40 an ounce, up $6.90 or 0.6 percent, helped by an unexpected interest rate cut by China’s central bank and as well on comments from European Central Bank President Mario Draghi that further stimulus will be announced by the ECB if required to contain eurozone deflation.
Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, remained unchanged at 720.91 tons on Monday from its previous close of 723.01 tons.
The dollar index, which tracks the U.S. unit against six major currencies, traded at 88.13 on Monday, down from its previous close of 88.38 late Friday in North American trade. The dollar scaled a high of 88.44 intraday and a low of 88.07.
The euro trended higher against the dollar at $1.2439 on Monday, as compared to its previous close of $1.2364 late Friday in North American trade. The euro scaled a high of $1.2444 intraday and a low of $1.2364.
In economic news, results from the Chicago Federal Reserve survey showed the National Activity Index to have declined to 0.14 in October from 0.29 in the preceding month.
German business confidence improved unexpectedly in November reversing last month’s decline, as the economy returned to growth avoiding a recession. The business confidence index in November rose for the first time in seven months to 104.7 from 103.2 in October — the lowest since December 2012, a survey conducted by the Ifo institute showed Monday. Economists forecast the index to fall further to 103.
Meanwhile, a Global Business Outlook survey from Markit Economics on Monday showed optimism among companies declined sharply to its lowest level since the survey was first initiated five years ago.
Among other data due this week are the results of consumer confidence surveys by the Conference Board and the University of Michigan and Reuters, the Commerce Department’s data on personal income and spending, new home sales and durable goods orders.
Also due this week are the results of house prices surveys for September from S&P/Case-Shiller and the Federal House Finance Agency, pending home sales data from the National Association of Realtors, preliminary reading of third quarter GDP and the Labor Department’s weekly jobless claims report.
The material has been provided by InstaForex Company – www.instaforex.com