Gold prices back down from earlier higher levels
Bullion prices ended the U.S. day session just slightly higher Monday, 16 June 2014 at Comex. More safe-haven demand was featured as geopolitical tensions are on the rise. However, gold prices backed down from earlier higher levels as profit taking surfaced following recent gains. Gold futures settled slightly higher on Monday after a round of better-than-expected U.S. economic data dampened earlier gains sparked by escalating violence in Iraq.
Gold for August delivery added $1.20, or 0.1%, to end at $1,275.30 an ounce, and July silver gained 6 cents, or 0.3%, to settle at $19.72 an ounce.
The situation in Iraq deteriorated during the weekend. Meantime, Russia-Ukraine tensions are still running high as Russia has cut the natural gas supply to Ukraine and said it will supply natural gas to Ukraine only if paid in advance.
Crude oil prices are at or near multi-month highs and U.S. Treasuries are also rallying on the more unsettled geopolitical front. World stock markets have seen some selling pressure in the wake of the rising geopolitical tensions.
The big economic data point of the week is likely to be the U.S. Federal Reserve Open Market Committee meeting that begins on Tuesday and ends on Wednesday afternoon, including a press briefing following the meeting by Fed Chair Janet Yellen.
Among today's economic data expected at Wall Street, Industrial production for May rose 0.6%, topping expectations, and the April performance was revised higher, a report from the Federal Reserve showed. New York regional manufacturing activity held near a four-year high in June, beating forecasts by ticking higher to 19.3 from 19.0 in May. Confidence among home builders increased in June to the highest level since January, according to a gauge from the National Association of Home Builders/Wells Fargo.
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