Gold Ends Weaker on Technical Selling, Stock Market Rally
New York (Apr 29) Gold futures ended the U.S. day session moderately lower Tuesday, while the spot (cash) gold market was near unchanged. More chart-based selling pressure was featured as the metal’s overall near-term technical posture remains in favor of the bears. A rally in the U.S. stock market Tuesday also pulled away investor monies from other asset classes, including precious metals. June gold was last down $3.30 at $1,295.70 an ounce. Spot gold was last quoted down $0.60 at $1,296.25. May Comex silver last traded down $0.133 at $19.455 an ounce.
The gold markets, both cash and futures, pushed up from early lower price levels to trade above unchanged in mid-morning dealings. Some bargain hunting and short covering were featured on the move, after last week's gains that did hint the gold market has put in a near-term low. While prices backed off again by the close, safe-haven buying continues to underpin the gold market, amid the ongoing tensions between Russia and Ukraine.
The Russia-Ukraine crisis is still at the forefront of the world market place this week. The situation has not de-escalated and remains on a medium boil as far as the markets are concerned. The U.S. and European Union slapped new sanctions on Russia Monday. Many reckoned the new sanctions might be stiffer than they were. This situation is still a major markets matter and will likely deteriorate before it gets any better. Gold and other safe-haven assets will likely at least see selling interest limited due to the instability in Ukraine.
This is a busy week of U.S. economic data, highlighted by the latest FOMC meeting of the Federal Reserve on that began Tuesday and ends Wednesday, the gross domestic product report on Wednesday and the Labor Department’s jobs report on Friday. Other key U.S. reports are scattered throughout the week. On Thursday there is also important manufacturing data coming out of China. Markets will likely be impacted by this week’s heavy slate of economic data.
