Gold Weaker On Profit Taking, Chart Consolidation; Big Data Week

New York (June 30)  Gold prices are moderately lower in early U.S. trading Monday, on some more profit taking and technical chart consolidation after recent price gains. Traders and investors are bracing for an extra important trading week this week. August Comex gold was last down $7.90 at $1,312.10 an ounce. Spot gold was last quoted down $4.40 at $1,311.25. December Comex silver last traded down $0.247 at $20.945 an ounce.

Monday is the last trading day of the month, of the quarter and of the first half of the year. That makes it an extra important trading day from a technical perspective. It is technically significant when a market price closes out the aforementioned periods at or near a weekly, monthly or quarterly high or low close.

There was more downbeat economic data from the European Union released Monday. EU inflation was unchanged in June from May, at 0.5% on an annual basis. The figure was in line with forecasts and remained at a four-year low. The European Central Bank wants to see an annual inflation rate of around 2%. The same report showed bank lending in the EU fell again, as it has done for 25 months in a row.

The market place is awaiting important economic data from China, as its purchasing managers index (PMI) is due out Tuesday. On Monday China housing prices were reported down in June. This is yet another sign of a slowing rate of growth in China’s still-booming economy.

U.S. economic data due for release Monday includes the ISM Chicago business survey, pending home sales, and the Texas manufacturing outlook survey. It’s a holiday-shortened trading week in the U.S., what with the Independence Day holiday on Friday. The key U.S. jobs report is issued a day early this month, on Thursday. This report is arguably the most important U.S. economic data of the month. Also on Thursday will be the monthly monetary policy meeting of the European Central Bank. It will be an extra important trading day on Thursday.

The civil war in Iraq is still an issue for the market place but it has at least temporarily moved off the front burner. The oil fields in the south of Iraq have not seen their production levels curtailed by the civil war taking place in the north of Iraq. Don’t be surprised to see in the near future this matter move back into the spotlight of the market place and once again significantly impact some market prices.

Source: KitcoNews