Indian Monsoon to Hurt Gold Prices; Brexit Fears Recede

KITCO NEWS - Gold (GLD) - Get Report prices ended lower Monday as investor risk appetite surges at the start of the trading week. Gold continues to be one of the best performing assets this year, but some investors seem to be agnostic when it comes to the metal. Frank Holmes, chief executive officer for U.S. Global Investors, explained that the metal headed lower for a second-straight session on Monday as growing expectations that the U.K. will remain part of the European Union lifted investors' appetite for riskier assets and prompted a rally in global stock markets. Another risk he sees is the start of the monsoon season in India, which would hurt crop production and in turn, gold demand as investors lose purchasing power. Some profit taking from recent gains also weighed on the safe-haven metal. Last week, gold prices hit a nearly two-year high. August Comex gold settled the day down $2.70 at $1,292.10 an ounce.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.