Traders and investors are now awaiting this week's FOMC meeting
Bullion prices dipped on Monday, 27 October 2014 at Comex failing to maintain the prior session's momentum in a busy week of corporate earnings and economic data. Last week, on Friday, gold put an end to a two-day losing streak after increased Ebola concerns sent investors to seek the perceived safety of the precious metal. A key meeting of the Federal Reserve, as it is set to announce the end of its 2008-era bond-buying stimulus program this week, also could influence prices of the yellow metal.
Gold for December delivery lost 2.50 cents to settle at $1,229.30 an ounce.
December silver gave up 2 cents to $17.16 an ounce.
No major, unsettling news developments occurred over the weekend, which limited buying interest in safe-haven gold. A weaker U.S. dollar index on this day did keep the gold sellers from getting too aggressive. Traders and investors are now awaiting this week's FOMC meeting. Focus is turning to the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve's regular meeting Tuesday and Wednesday. As usual, the Wednesday afternoon statement from the FOMC at the conclusion of the meeting will be very closely scrutinized by the market place. Most believe the Fed will formally end its monthly bond-buying program, called quantitative easing.
Attention is also on the two key outside markets that impact many other markets: the U.S. dollar and crude oil. The dollar index was weaker on Monday but still hovering not far below its recent four-year high. Meantime, Nymex crude oil prices were lower and hovering near a two-year low.
The much-anticipated stress test results on European Union financial institutions were released over the weekend. While there were some EU banks that failed the tests, overall the results were not deemed threatening to the EU financial system.
There was another downbeat economic report coming out of the EU on Monday, as Germany's Ifo business confidence index came in at 103.2 in October, versus 104.7 in September. The Ifo reading this month was at a two-year low.
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