Gold Drifts Sideways Amid Light Economic Calendar

NEW YORK (TheStreet) -- Gold prices were drifting sideways on Monday as a lack of economic data left traders on the sidelines.

Gold for August delivery at the COMEX division of the New York Mercantile Exchange was inching up 30 cents to $1,252.80 an ounce. The gold price traded as high as $1,257.30 and as low as $1,251.60 an ounce, while the spot price was increasing 60 cents, or 0.05%.

"I think there's been no headline risk recently," Michael Smith, president of T&K Futures and Options, said in a phone interview. "To me this market is going to trade sideways-to-down until there's some bad news in the world where people come in to hedge their portfolios, and if the good news continues the downturn continues."

Last week, the European Central Bank cut the refi rate to 0.15% and cut the deposit rate to unprecedented negative territory for the first time to -0.1%. The decision on Thursday triggered buying in gold futures.

The May jobs report released on Friday showed added payrolls in-line with economists' expectations, which left the price of the yellow metal virtually unchanged.

With tensions between Ukraine and Russia easing, a lack of fundamental changes in the gold market and a steady rise in equity markets, analysts suggested that gold prices likely will remain in a tight trading range.

Silver prices for July delivery were rising 8 cents to $19.07 an ounce, while the U.S. dollar index was gaining 0.29% to $80.66.

The most actively traded gold ETF, SPDR Gold Trust (GLD), on Monday was up 0.07% to $120.70. 

Gold mining companies were mixed on Monday. Shares of Newmont Mining (NEM) were sliding 1.3% to $22.81, while shares of NovaGold Resources (NG) were gaining 2.4% to $3.47.

-- Written by Joe Deaux in New York.

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