Wall Street equities declined for a third straight session. William Dudley, President of the Federal Reserve Bank of New York, said in a speech the timeline that Fed Chairman Ben Bernanke articulated in June for scaling back the central bank’s stimulus measures is “still very much intact,” as long as the economy keeps improving. Gold continued to decline trading at 1326.60 down by just a ½ dollar in the Asian session. Worries that central banks’ money-printing to buy assets will stoke inflation have been a key driver in boosting gold, which rallied to an 11-month high last October after the Fed announced its third round of aggressive economic stimulus. Speculators slashed bullish bets in futures and options of US gold and silver markets, a weekly report by the Commodity Futures Trading Commission showed on Friday.
Gold snapped a 2-day decline on speculation that demand may strengthen before China’s Golden Week holiday as lower prices lure buyers. Gold prices settled lower on Monday amid a decline in investment demand as holdings in SPDR Gold Trust declined. Indian imports, affected by a July 22 RBI notification stipulating that at least 20 per cent of the yellow metal brought into the country should be re-exported, are likely to resume anytime now. With Kharif harvest beginning and festivals ahead, rural consumers could begin buying gold. On the other hand, buying in China is seen up ahead of holidays starting October 1. Gold purchases in Shanghai exchange increased on Monday.
Holdings of gold in electronic form in exchange-traded funds dropped. On Monday, SPDR Trust, world’s largest gold exchange traded fund, reported that its holdings dropped below 910 tonnes to 909.59 tonnes.
Silver continues to decline weighed down by both precious and industrial metals. Silver gave up 32 pips this morning to trade at 21.82. Industrial metals prices fell for a second straight session yesterday as a weak euro and concerns about growing supply offset expectations of a rebound in demand from top consumer China. Copper eased by 9 points to trade at 3.288. U.S. lawmakers critical of Wall Street’s sway over physical commodity markets will push financial regulators to take action at a hearing next month, two industry sources said. Metals on the London Metal Exchange (LME) closed mostly lower, but kept in recent ranges amid quiet trade. Fresh jitters regarding when the US may start to withdraw its commodity-supportive bond-buying program weighed on demand expectations and dented prices.
Copper prices slumped on Friday as a pair of Federal Reserve officials indicated that the central bank may reduce the pace of its bond purchases in the near future. The comments spooked investors just two days after the bank’s policymaking committee decided to stick to its $US85-billion-a-month bond-buying program.
FindYourFX.com is currently providing free Forex signals to allow our visitors to monitor our real account trading activities, and also provide free signal following software (MT4 EA) to our VIP clients. All our signals will be provided to these clients in real time, all our clients account will have the same profits as ours. If you become our clients, we will provide you Forex rebates in cash regardless your trading win or loss.