Gold Levels Off After Big Gains Last Week

Washington (June 23)  Gold prices are lower Monday morning following some profit taking after last week's gains. Investors are also awaiting data on US manufacturing activity and retail sales.

However, worries about the situation in  Iraq  where militants have reportedly seized more cities in the northern part of the country appear to be limiting bullion's losses.

Gold futures for August are down  USD4.60  or 0.35% at  USD1,312  an ounce.

On Friday, gold futures ended up  USD2.50  or 0.2% at  USD1,316.60  an ounce, extending gains to a third successive session. For the week, gold gained 3.3%.

The Federal Reserve's pledge to hold rates at a record low for an extended period of time and the ongoing violence in  Iraq  contributed to gold's upmove.

Silver for September is down  USD0.144  or 0.69% at  USD20.850  an ounce.

Meanwhile copper is up  USD0.023  or 0.75% at  USD3.136  per pound amid hopes of increased demand following a better than expected reading on Chinese manufacturing activity.

On the economic front,  Markit  will release the results of its preliminary manufacturing survey for the US at  9:45 am ET  . Economists expect the manufacturing purchasing managers' index to rise to 56.5 in June from 56.2 in May.

At  10 am ET  , the  National Association of Realtors  will release its existing home sales data for May. The consensus estimate calls for existing home sales to come in at a seasonally adjusted annual rate of 4.75 million units compared to a 4.65 million unit-annual rate in April.

Source: Alliance News