Prices find some support from weakness in the U.S. dollar
Bullion prices ended with mild gains on Monday, 19 May 2014. Gold prices settled with a slight gain on Monday, finding some support from weakness in the U.S. dollar but failing to reclaim the $1,300 level as investors looked ahead to speeches from Federal Reserve officials and minutes from the central bank this week. Firmer U.S. stock index prices on Monday were also a mild negative for the gold market.
Gold for June delivery edged up by 40 cents to settle at $1,293.80 an ounce on the Comex division of the New York Mercantile Exchang.
July silver tacked on 2 cents, or 0.1%, to $19.35 an ounce.
Reports on Monday said a government election result in India last Friday is a positive for the gold market as the more pro-business election winner could move to ease the current import restrictions on gold.
The European Central bank said Monday it is coordinating with Switzerland and Sweden on gold transactions but none have plans to sell significant amounts of gold. The coordination is in place to keep the gold market stable during any transactions that do occur.
Asian equity markets were also weaker on some more downbeat economic news coming out of China. The real estate market in China is showing more signs of weakness, weekend reports out of China said. There was no major U.S. economic data due for release on Monday.
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