The gold price tread water on Monday as investors would rather focus on equities in these final few sessions of 2014.
Gold for February delivery on the Comex division of the New York Mercantile Exchange was last down 80 cents at $1,195.20 per ounce. Trade has ranged from $1,193.80 to $1,203.60.
“We do not expect much to happen in the gold market at least until the end of the year,” INTL FCStone’s Ed Meir said. “However, after that, the general trend seems to one of a rising dollar and revived equity markets, while commodities are likely to remain under pressure.”
The economic data flow will be light as well today. German import prices fell 0.8 percent in November, while US existing home sales figures are due this afternoon.
In the run-up to the Christmas holidays, retail sales data for France and Italy will be out on Tuesday, while US releases include final quarterly GDP numbers, new home sales and weekly unemployment claims.
In the wider-markets, the dollar was 0.28 percent softer at 1.2264 against the euro, while Germany’s DAX and France’s CAC-40 were up 0.96 percent and 0.48 percent. In Asia, the Nikkei and Hang Seng ended up 0.08 percent and 1.26 percent.
“Those owning gold in terms of the US dollar find themselves bored, and if they are not they should be. With gold trading $1,195, it’s down 0.5 percent for the year-to-date and that, in our opinion, defines boredom,” Dennis Gartman, editor of the Gartman Letter, said. “However, those long of gold in euro denominated terms know that with gold trading 977 per ounce, they are up 11.6 percent for the year.”
As for gold market positioning, Comex gold net longs were down by 330,000 ounces to 13.30 million ounces in the week ending December 16, which represents the first decline in a four weeks, according to CFTC data.
“The move was mostly on the back of long liquidation, although some of it was offset as shorts continued to seek cover,” UBS’ Edel Tully noted.
The Comex silver position was reduced by 10.99 million ounce to 164.81 million ounce as shorts rebuilt positions for the first time since early November. This was further supplemented by long liquidation, Tully added.
In other precious metal prices, Comex silver for March delivery was essentially unchanged at $16.025 per ounce. Trade has ranged from $15.965 to $16.175.
Platinum futures for January delivery on the Nymex were up 70 cents at $1,197.70 per ounce, while the most-actively traded palladium contract was at $807.55 per ounce, up $2.45.
The post Comex quiet amid light data flow, thin holiday trade appeared first on The Bullion Desk.
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