Gold extends its losing streak to fifth session
Bullion prices ended the U.S. day session modestly lower at Comex on Tuesday, 04 November 2014. Gold extended its losing streak to a fifth session on Tuesday as sellers continued to trim their positions due to expectations of further strength in the U.S. A day earlier, gold continued last week's brutal finish, as the surprise stimulus move in Japan continued to provide a tailwind for the dollar. Shrinking demand for the metal in China also has dogged prices.dollar.
Gold for December delivery fell $2.10 to settle at $1,167.70 an ounce.
December silver contract lost 1.5%, or 25 cents, to $15.95 an ounce.
The outside market feature Tuesday was the drop in crude oil prices to a three-year low of $75.84, basis the nearby December Nymex futures contract. Combined with the appreciating value of the U.S. dollar, these two outside markets have been a major influence on other markets the past few weeksand especially a negative force for the raw commodity sector.
The other feature Tuesday was Japan's Nikkei stock index hitting a seven-year high. The Nikkei has rallied over 7% since last Friday, in the aftermath of a new batch of monetary stimulus from the Bank of Japan. The Japanese yen has slumped against its world rivals following the BOJ move on Friday.
European stock markets were under selling pressure Tuesday following news the European Commission reported it expects European Union gross domestic product to rise by just 0.8% in 2014. That's down from the 1.2% growth-rate forecast the agency issued in the spring. The Commission cited the Russia-Ukraine tensions as a major contributor to the slowing EU growth the past few months.
There are two big economic data points this week: the monthly meeting of the European Central Bank on Thursday and the U.S. employment situation report on Friday. Recent dour economic data coming out of the EU, and Japan's fresh monetary stimulus last week, suggest the European Central Bank will move to enact more monetary stimulus sooner rather than later.
Powered by Capital Market - Live News
