Sector Update: Gold Futures Range Bound, Near Four-Month Low as Metal's Safe Haven Demand Evaporates
Gold futures were range bound Monday morning, hovering near a four-month low as investor confidence in the global economy encourages fund inflows into riskier assets at the expense of safe haven gold.
Monday is the first trading day of June. Gold ended with a loss last Friday, and over May shed 3.9% of its value, its worst monthly performance of the year.
Despite the metal's recent drubbing, and some sentiment that equities may be approaching overbought territory, traders remain reluctant to return to the gold market.
According to the latest Commodities Futures Trading Commission Data, in the week ended May 27th, money managers cut their net-long position, or bets on higher prices, by 24%. Net-short positions jumped by 72%.
This week, the traders will base their price bets on the outcome of the latest economic data. Globally, PMI data will be in the spotlight. Domestically, at 10:00 a.m. the ISM manufacturing index for May will be released. Of course, jobless claims due later in the week will exert influence on gold prices .
At last check, gold futures were up 0.02% at $1,246.30 per ounce.
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