Gold Stuck and Going Nowhere as Traders Wait for Fed Minutes
Gold for August delivery at the COMEX division of the New York Mercantile Exchange was effectively flat at $1,317.10 an ounce. The gold price traded as high as $1,325.70 and as low as $1,315.60 an ounce, while the spot price was off $3.60, or 0.27%.
Marex Spectron's head of precious metals, David Govett, summed up the silent trading day in a note to clients about action in Asia and Europe."Overnight in Asia, I actually thought my screen had broken, when this morning the price was exactly the same as it was when I went to bed! However, it hadn't and yes, the market is that quiet," Govett wrote from London. Stock Market Today: Down Slips Below 17,000 as Earnings Season Gets Under Way European Stocks Fall on U.K. Manufacturing Slump Gold on July 3 dropped about $10 an ounce after the Labor Department reported that the U.S. economy added 288,000 jobs in June, which was the fifth straight month of more than 200,000 new jobs added. Investors typically buy gold as a hedge against rising inflation and decelerating economic activity. Looking ahead, traders are hoping to glean critical details on Wednesday in the Federal Reserve's policy-making meeting minutes. While Fed Chairman Janet Yellen has reiterated that the Fed won't raise interest rates for a significant amount of time after the central bank ends its economic stimulus program, other Fed officials have said they think the fed funds rate will increase by the first quarter of 2015. A rise in interest rates signals tightening monetary conditions, which likely would push down the gold price. Silver prices for September delivery were slipping 2 cents to $20.99 an ounce, while the U.S. dollar index was sliding 0.05% to $80.18. The most actively traded gold ETF, SPDR Gold Trust (GLD), was slipping -- in tandem with the gold spot price -- by 0.24% to $126.72. Until the market reads the latest Federal Open Market Committee minutes, investors can expect a slow gold trade. -- Written by Joe Deaux in New York. >Contact by Email. Follow @JoeDeaux
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts