Gold Eases From Near 7-Week Highs Despite Dollar Slump

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Includes: DGL, DGLD, DGP, DGZ, DZZ, GEUR, GHE, GHS, GLD, GLDI, GLDW, GLL, GTU, GYEN, IAU, OUNZ, PHYS, QGLDX, SGOL, UBG, UGL, UGLD
by: Investing.com

Gold prices fell below breakeven on Monday, despite a more than fourteen-month slump in the dollar on the back of growing uncertainty whether the Federal Reserve will keep to its plan to raise rates at least once more this year.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $1.76, or 0.13%, to $1,266.64 a troy ounce.

Gold prices traded in a narrow five-dollar range between $1,268.40 and $1,270.31, struggling to capitalise on dollar weakness amid a drop in physical demand for the yellow metal.

Gold prices in India last week recorded the biggest discount in seven months as a rebound in prices hurt retail demand while imports of the precious metal are expected to come under pressure amid a seasonal slowdown.

According to Thomson Reuters GFMS "With imports in the first half already near the whole of 2016 volumes, it is less likely in our view that imports will cross 250 tonnes in the second half."

Meanwhile, political uncertainty from Washington continued to limited downside in gold prices, as the Trump administration struggles to deliver on its economic agenda which includes tax-reform, after the U.S. Senate rejected a bill to repeal Obamacare.

Market participants, however, will turn attention to monetary policy, as central bank policy decisions from Australia and the United Kingdom are slated for this week while U.S. nonfarm payrolls data due Friday rounds off the trading week.

Other precious metals capitalized on a slump in the dollar, as silver futures rose 0.52% to $16.781 while platinum futures rose by 0.48% to $941.10.

Copper traded at $2.894, up 0.66%, while natural gas, declined by 5.07% to $2.792.

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