Gold futures showed slight declines to change hands below $1,500 per ounce on Monday as investors were concerned over the European crisis and arrest of IMF raised renewed tensions among commodity traders.
The yellow metal prices dipped earlier Monday as the dollar posted gains against the euro after news of the arrest of the head of the International Monetary Fund Dominique Strauss-Kahn.
Moreover, chief executive officer of 2100 Xenon Group, Jay Feuerstein told if Congress reached an agreement, which ask government to cut its spending in order to extend the debt limit, the economy would definitely suffer. Stocks went down on that, and also valuable metals.
Gold had recovered successfully from earlier losses and test $1,500 per ounce level because analysts reported that Strauss-Kahn’s arrest was not likely to affect the table talks on restructuring Greek debt, helping the euro and driving the US dollar a little lower.
However, as the New York floor session ended, gold shed its earlier gains due to increased focus of investors on the awaiting US debt ceiling issue.
At the New York Mercantile Exchange, gold contracts for June declined 0.20% or $3.00 to reach at $1,490.60 per ounce on the Comex division. Following the yellow metal Silver also saw some correction, as its July delivery went down $0.88 or 2.50% to $34.13 per ounce.
Analyst at VTB Capital said in a note to clients, Andrey Kryuchenkov, shared his thoughts that it would be a key factor to keep an eye on Eurozone inflation forecasts during the week.
Considering other notable metals trading, copper for July delivery added 0.20% or $0.01 to stay at $3.99 pre pound. Similarly, July platinum shed 0.50% or $9.30 to reach at $1,760 per ounce.
Palladium contract for July gained $7.05 or 1.00% to settle at $713.50 per ounce.
