Gold settles with biggest monthly gain since February
It was mixed finish for bullions on Monday, 30 June 2014. Gold futures on Monday settled with their biggest monthly gain since February, as traders awaited the market's next likely catalysts, which will likely come in the form of monthly U.S. employment data and the European Central Bank meeting later this week. Silver prices dropped.
Gold for August delivery tacked on $2, or 0.2%, for the session to settle at $1,322 an ounce on the Comex division of the New York Mercantile Exchange. Prices saw gains of around 6.1% for the month and 3% for the quarter.
September silver fell nearly 8 cents, or 0.4%, to settle at $21.06 an ounce following a gain of around 0.6% last week. For the month, prices were up nearly 13% for the month and logged a quarterly gain of 6.6%.
Monday is the last trading day of the month, of the quarter and of the first half of the year. That makes it an extra important trading day from a technical perspective. The U.S. dollar index was poised to close at a bearish monthly low close on Monday. That's also a bullish factor for the metals markets.
There was more downbeat economic data from the European Union released on Monday. EU inflation was unchanged in June from May, at 0.5% on an annual basis. The figure was in line with forecasts and remained at a four-year low. The European Central Bank wants to see an annual inflation rate of around 2%. The same report showed bank lending in the EU fell again, as it has done for 25 months in a row.
The market place is awaiting important economic data from China, as its purchasing managers index (PMI) is due out on Tuesday. On Monday China housing prices were reported down in June. This is yet another sign of a slowing rate of growth in China's still-booming economy.
U.S. economic data due for release on Monday included the ISM Chicago business survey, pending home sales, and the Texas manufacturing outlook survey. None of that data had a big impact on the market place. It's a holiday-shortened trading week in the U.S., what with the Independence Day holiday on Friday. The key U.S. jobs report is issued a day early this month, on Thursday. This report is arguably the most important U.S. economic data of the month. Also on Thursday will be the monthly monetary policy meeting of the European Central Bank. It will be an extra important trading day on Thursday.
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