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Gold Prices Slips

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Gold Prices Slip As World Stock Markets Rally

 

Monday July 11, 2016 08:23

(Kitco News) - Gold prices are steady to slightly lower in early U.S. trading Monday. Risk appetite in the world marketplace is on the upswing to start the trading week. Global stock markets were higher overnight, led by Japan’s Nikkei, which rallied by 4% for the biggest daily gain since March. U.S. stock indexes are pointed toward higher openings when the New York day session begins, and are poised to close into record high territory for the S&P 500. August Comex gold was last down $1.70 an ounce at $1,356.60. September Comex silver was last up $0.241 at $20.33 an ounce.

Traders and investors are cheered by last Friday’s U.S. jobs report that showed a much-stronger-than-expected non-farm jobs growth number of 287,000 in June, following a weak reading of up just 38,000 in May.

However, still troubling to many veteran market watchers is the fact that many government bond markets continue to see their yields drop, with many at or near record lows. The safe-haven demand for U.S. Treasuries, the U.S. dollar and gold at present suggests many feel there are rough waters that lie ahead on the world economic, political and financial scene.

On Thursday the Bank of England meets to discuss U.K. monetary policy. Some believe the BOE will move to lower interest rates at the meeting, following the recent Brexit vote.

U.S. economic data due for release Monday is light and includes the employment trends index.