Gold for August delivery at the COMEX division of the CME were increasing $5.10 to $1,282.70 an ounce. The gold price traded as high as $1,293.60 and as low as $1,272.50 an ounce, while the spot price was slipping 82 cents.
Multiple research notes out Monday morning suggested that more analysts believe price support for gold may be firming following the shift to a bear market in mid-April, when prices plummeted some 13% across two consecutive trading sessions .
"The strength in China and India gold premiums, the recent move higher in gold lease rates and central bank gold buying indicate physical demand for gold may provide some support in the near term," Deutsche Bank wrote in a note on Monday.Silver prices for July delivery were up 3 cents to $19.83 an ounce, while the U.S. dollar index was adding 0.28% to $83.16. Also lending support to prices was a mixed bag of economic data from China overnight. Second-quarter gross domestic product there slowed to 7.5% year over year from 7.7% the previous quarter, which bolstered a trend of declining GDP numbers in the country. China also reported that industrial production dipped, but retail sales increased. "We saw a lot of weakness out of China and that weakness is thought that China is going to still be continuously ramping up their [quantitative easing] plan -- or at least getting in the market and driving it in that direction," Phil Streible, senior commodities broker at RJO Futures, said in an interview. Streible said he was expecting momentum to continue. Last week COMEX gold rose 5.4% as Federal Reserve Chairman Ben Bernanke commented that the central bank would remained committed to a highly accommodative monetary policy and that the short-term federal funds rate wouldn't rise anytime soon. Paper markets -- COMEX futures and exchange-traded funds -- have led the charge lower in gold prices as record outflows from the ETFs have mounted in 2013. But last week marked the first week in more than two years during which the lowest trade of gold ETF SPDR Gold Trust (GLD) didn't dip below the closing price for the previous week, according to Miller Tabak.
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