Gold Prices Plummet Amid Stronger Dollar and Commodity Sell-Off

Strategic Insights -

Gold prices are expected to open lower on the Comex division of the New York Mercantile Exchange, with August futures projected to fall by around $6 an ounce and July silver by 50 cents an ounce, according to electronic activity ahead of the pit session. The stronger dollar and a broad commodities sell-off have led to spot gold trading at its lowest since May 20, with London-based traders citing these factors as the main contributors to the decline. In overnight activity, spot gold has fallen by $4.90 to $934, and the euro has dropped to $1.3858 from $1.3995 late Friday afternoon, impacting the metals market in the short term.

Key Takeaways:

  • The stronger dollar and a broad commodities sell-off have led to a decline in gold prices, with spot gold trading at its lowest since May 20.
  • August gold futures are expected to open floor trading in New York around $6 an ounce lower on the Comex division of the New York Mercantile Exchange.
  • July silver is expected to be down 50 cents an ounce, citing electronic activity ahead of the pit session.
  • Spot gold has fallen by $4.90 to $934 in overnight activity, with London-based traders attributing the decline to a stronger dollar and broad commodities sell-off.
  • The euro has dropped to $1.3858 from $1.3995 late Friday afternoon, impacting the metals market in the short term.
  • The New York Federal Reserve's Empire State manufacturing survey is scheduled to be released on Monday, with the headline index for June forecast to come in at minus 3.
  • The National Association of Home Builders' housing-market index is due out on Monday at 1 p.m. EDT (1700 GMT), along with the Producer Price Index, housing starts, and industrial production on Tuesday.

Statistics:

  • August gold futures are expected to open floor trading around $6 an ounce lower on the Comex division of the New York Mercantile Exchange.
  • July silver is expected to be down 50 cents an ounce.
  • Spot gold has fallen by $4.90 to $934 in overnight activity.
  • The euro has dropped to $1.3858 from $1.3995 late Friday afternoon.
  • The New York Federal Reserve's Empire State manufacturing survey is scheduled to be released on Monday with a forecast of minus 3.

Sources:

  • Dow Jones Commodities News via Comtex, Jun 15, 2009
  • Dow Jones Newswires, 06-15-09 0800ET
  • Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com