Gold Daily Fundamental Analysis
The metal will start a new week after heavy losses endured on Thursday and Friday with the rising optimism that dented the metal’s appeal.
Investors will start on Monday with focus on Greece again and the Sunday euro area finance ministers meeting. With Greece meeting the preconditions for lenders to release the fifth tranche of loans from last year’s bailout of 110 billion euros, finance minister Evangelos Venizelos will argue on Sunday for the aid and for the new bailout assuring that Greece will secure its end of the deal.
The expectations are already upbeat and have been since last week that the finance ministers will release the aid and stave off the area’s first sovereign default and that has been keeping the downside pressure on gold.
Monday will focus on the comments and decision from the finance ministers that meet on Sunday which will keep the volatility with eased haven demand that will pressure gold lower.
Choppy trading will prevail and thin trading might offset the losses for gold with the dollar softness and increased volatility with the absence of U.S. markets for Independence Day Holiday.
Crude Oil Daily Fundamental Analysis
Crude oil prices fell on Friday despite the better than expected ISM manufacturing index from the United States, where China’s factory output expanded at the slowest pace in more than two years, which pressured crude oil prices to drop.
Since U.S. markets will be off on Monday celebrating the 4th of July Holiday (U.S. Independence Day), we expect crude oil to trade within a limited range, and most likely without a clear direction.
Natural Gas Daily Fundamental Analysis
Natural gas erased Thursday’s gains and dropped on Friday, where expectations of moderating weather conditions weighed down on natural gas prices, as demand for power-plant fuel will ease.
Since U.S. markets will be off on Monday celebrating the 4th of July Holiday (U.S. Independence Day), we expect natural gas to trade within a limited range, and most likely without a clear direction.
