Gold hits a three-week high on Monday
Bullion metal prices ended solidly higher on Monday, 12 August 2013 at Comex. Comex gold futures prices ended the U.S. day session with good gains and hit a three-week high on Monday. Reports on Monday said gold-backed exchange traded funds saw decent inflows last Friday.
Gold for December delivery ended higher by $22 (1.7%) at $1,334.2 an ounce on the Comex division of the New York Mercantile Exchange on Monday.
September silver ended higher by $0.93 (4.6%) at $21.34 an ounce on Monday.
China's stock market rallied Monday and hit a two-month high after some recent upbeat economic news and notions the Chinese government wants to inject fresh stimulus measures into its economy. The better China economic data and higher Chinese stock market are also bullish underlying factors for the precious metals and for the entire raw commodity sector.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.3% on Monday.
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Among economic data expected at Wall Street today, data was limited to the July Treasury budget, which showed a deficit of $97.6 billion following a deficit of $69.6 billion in July 2012. Since the Treasury data are not seasonally adjusted, the data cannot be compared with the June level. The consensus expected the budget to show a deficit of $96 billion.
Also, the Congressional Budget Office released their budget preview last week and predicted a shortfall of $96 billion. The market is well aware of the CBO's forecast and the reaction to the budget data is limited.
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