The price of gold was dragged down to its six-week low on Monday, a much stronger U.S. dollar and a big sell order have weighed on the yellow metal’s demand. However the declines were narroed due to global political crisis somehow supports the bullion.
Switzerland’s MKS head of trading Afshin Nabavi said the one behind gold’s declining prices were the sale of 18,500 lots of gold, which has the sum of over 1.85 million ounces, along with 5,000 ounces of silver in 5,000 on Comex in a short time. MKS trader Bernard Sin, meanwhile, suggested that it is clear that the selling was a mistake and bought it back hurriedly, triggering stops under $1,250. He added that there are still concerns worldwide, this includes Brexit, bailouts if Italian banks and President Trump’s policies. Investors see gold as the perfect insurance in the midst of political chaos like this.
Looking in prices, U.S. gold futures finished the day lower at $1,246.40 per ounce and Spot gold edged down more that 1.06 percent to trade at $1,243.02 per ounce. Spot fell to its lowest level since May 17 at $1,236.46 per ounce.
It is already given that a much stronger U.S. dollar is not good with gold because it makes the non-yielding bullion high-priced for non-U.S. holders which will further reduce the demand. Meanwhile in Italy, it rescued Monte dei Paschi di Siena and rival lenders Veneto Banca and Popolare di Vicenza. However the nation’s banking industry is still stuck with its debt of €300 billion (335 billion in USD).
On other metal prices, palladium was 1.79 percent up at $867.25 an ounce, platinum fell by 0.97 percent at $917.00 an ounce and spot silver dropped by 0.60 percent at $16.59 an ounce.