Bullion prices declined further on Monday pressurized by firm USD and continued profit booking. The most active August Gold futures at COMEX shed as much as $10.1 or 1.05% from previous close to settle at $952.5 while July Silver futures fell by 43.3 cents from previous close to close to at $14.955.
In absence of any major economic data releases yesterday, Bullion prices were largely taking cues from Dollar movement which extended the rally on Monday which originally began on Friday after a positive payrolls data. Generally alternate assets like Gold and Silver move in negative direction to that of USD, Any optimism about USD will pressurize Bullion prices.
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The Dollar index which measures Dollar performance against 6 major currencies made high of 81.466 before closing at 80.909. In other significant market drivers, the Gold holdings of world’s largest Gold ETF SPDR Gold Trust remained unchanged at 1132.15 tons as on 8th June 09.
Among economic data scheduled on Tuesday, we have the German industrial production which is expected to improve to 0.3% compared to previous 0%. On the whole Bullion prices are expected to trade sideways with bias on lower side.
