Credit: Shutterstock photoGold ends moderately lower, Silver dipped too
Gold futures on the COMEX Division of the New York Merc finished lower Monday, as players welcomed the debt-ceiling deal reached in Washington, thus eroding Gold's appeal as a safe-haven.
But Bullion gained some support as a gauge of manufacturing activity disappointed investors.
The most active Gold contract for December delivery pares 9.5, or 0.6%, to 1,621.7 oz.
Gold has suffered a bit as relief over coming to an agreement to raise the US debt ceiling prompted some investors to take profits from the ultimate safe-haven asset.
But Gold regained some ground after the Institute for Supply Management's manufacturing gauge in July plunged 4.4 pts to 50.9%, the lowest reading since July 2009 and barely staying above the 50% no-change line.
Gold gained 1.9% last week, bringing the July's rise to 8.5%, as some investors purchased Gold on the belief that it holds its value better than other assets during economic turmoil.
Silver for September delivery trimmed 79.7, or 2%, to 39.309 oz.
Crude Oil falls on stronger USD
US Crude Oil price fell Monday as US manufacturing data came in weak and disappointing and the USD gained strength on the debt deal.
Crude Oil rose after opening as market sentiment was lifted by the debt deal reached in Washington Sunday evening. New York Crude benchmark WTI touched the day-high of 98.60 bbl.
But the rally lost momentum after the Institute for Supply Management reported that US manufacturing expanded at a much slower-than-expected pace in July.
After Friday's release of data showing weak economic growth for the 1-H of 2011, investors were wary of a Double-Dip recession in the United States, pressuring the Crude Oil markets.
Meanwhile, the USD gained on the debt deal. The Dollar Index, tracking the "Greenback's" performance against a basket of currencies, rose 0.7%, adding pressure to Dollar-denominated Crude Oil prices.
And the equities, to which Crude Oil usually correlated, fell too. All the three major stock indexes in Wall Street slipped, indicating risk aversion increase among investors.
WTI Light, Sweet Crude for September delivery fell 0.81, or 0.85% to finish at 94.89 on the New York Merc, after tapping a low a 93.42 bbl.
But in London, Brent Crude for September delivery closed up as supplies from North Sea decreased, and last traded around 117 bbl.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
