Gold Price Flat on Monday After Losing Ground Overnight - Gainesville Coins News
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Gold Price Flat on Monday After Losing Ground Overnight

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Gold Price Flat on Monday After Losing Ground Overnight

charting gold price

Spot gold was choppy but traded basically sideways on Monday, steadying around $1,347/oz.

The yellow metal leaked lower in overnight trading. With the rally above $1,350 late last week, some gold traders are likely taking profits.

U.S. bond and stock markets are closed today for President's Day. Commercial banks will be off for the holiday, too.

Wall St last closed completely flat on Friday.

The precious metal that saw the most movement was palladium, which was down 0.8% (-$8) to $1,024/oz.

Silver prices were also around unchanged at $16.65/oz.

Platinum inched higher to about $1,007/oz.

Dollar Gains Ground While Markets On Holiday in U.S., Asia

Most foreign currencies slipped against the dollar, which is still barely off of a three-year low.

The DXY index traded at 89.4, up about 0.3%.

Accordingly, the Japanese yen lost 0.4% to ¥106.66.

The euro slipped 0.2% against the USD to $1.238. The pound sterling was off 0.35% to a hair below $1.40.

Traders in Europe carried disproportionate sway over the global markets during the session.

In addition to President's Day in the U.S., exchanges in much of Asia are also closed this week for Lunar New Year.

Other agencies and government services like the U.S. Postal Service (USPS) are also be closed today.

European indices fell marginally on Monday. Shares were off just 0.2% in France, Germany, and the U.K.

Bonds in the eurozone also fell, sending yields higher across the continent. The 10-year Treasury yield last closed at 2.87%.

Britain's 10-year Gilt saw its yield rise to 1.60%, up 26 basis points just in the last month.

Can the Fed Hike Rates Without Crashing the Financial Markets?

Aside from rising bond yields, equity markets are still fearful about the impact of greater inflation and higher interest rates on stocks and bonds.

If investors feel the bond market is shaky, gold is a key safe haven from disruptions in the finance sector.

jerome powell Jerome Powell

Such a conundrum could force the Federal Reserve to balk at raising interest rates three or four times this year.

However, new Fed Chair Jerome Powell has sounded determined to be more hawkish than his predecessor.

Commodities were generally quiet amid light trading, but oil prices were higher. WTI crude was up more than 50¢ (+0.8%) to $62.20/bbl and Brent crude added 0.7% to $65.30/bbl.

Weakness for the dollar has especially provided a lift to crude oil.

Prices for cryptocurrencies continued to rebound. Bitcoin traded back above $11,000 following four straight winning sessions. BTC has recovered 50% from its lows to start the month.

Cryptocurrency traders and forex traders are still in action on Monday, but trading volumes may be lower due to the various market closures.

Although the negative press about cryptos never seems to end, sentiment in the virtual currency market has remained fairly bullish.

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Everett Millman

Analyst, Commodities and Finance
Managing Editor

Everett has been the head content writer and market analyst at Gainesville Coins since 2013. He has a background in History and is deeply interested in how gold and silver have historically fit into the financial system.

In addition to blogging, Everett's work has been featured in CoinWeek, Advisor Perspectives, Wealth Management, Activist Post, and has been referenced by the Washington Post.

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