According to Kitco news, Comex gold futures are going through eight straight trading days in a row of losses, which makes it the longest daily selling streak in four years. June Comex gold last trades by a decline of $8.40 at $1,356.30 an ounce. Spot gold was last estimated low by $2.10 at $1,358.50.
An overnight report stated that investors globally have derelict about $22 billion worth of gold exchange traded funds (ETFs) over almost the last five months. The big assembly in the U.S. and Japanese stock markets, a stronger USD, and low inflation opportunities globally are most important bearish weights on the metals.
The Japanese yen’s recover against the USD is featured to begin the new trading week Monday. Much of the recovery is expected short covering after the yen’s main decline the past several months. Monday the downside price action in the yen is nearby completed, said by the Japan’s economy minister. There is a Bank of Japan monetary policy meeting Tuesday and Wednesday that will be focused on by the market place. Yet, the BOJ is probably not to make any main policy changes.
Chinese housing prices increased in April, up by 3.7% and 2.8% in two separate readings, reports from China on Monday stated. This put ideas Chinese monetary officials might lure the policy to stop inflation. That will make a bearish improvement for the raw commodity sector.
On CNBC Monday morning, Dallas Fed President Richard Fisher stated that the Federal Reserve is currently debating on when to bring down the Fed’s quantitative easing program. Planning the Fed will “taper” its monthly bond-buying program sooner than later.
U.S. economic data, that will be announced Monday, will contain the Chicago Fed national activity index.
The London previous P.M. fixing of $1,368.75 and the fresh A.M. gold fixing is $1,353.75.
Technically speaking, Gold prices on the daily bar chart are in a 7-month-old downtrend. June gold futures prices overnight hits a four-week low also bears are in a strong near-term technical control. Bears’ next near-term downside is closing prices below solid technical support at the April low of $1,321.50. The bulls’ next upside near-term price will produce a close above solid technical resistance at $1,400.00. First resistance is sighted at the overnight high of $1,364.00 and then at $1,375.00, as for the first support is sighted at $1,350.00 and then at the overnight low of $1,336.30.