The gold price was around intraday lows late on Monday afternoon London trading, with the heavy liquidations highlighted in the CFTC data appearing to weigh.
Spot gold was last at $1,181.00/1,181.80 per ounce, down $6.30 on Friday’s close, having traded in a $12 intraday range so far.
With little data released on Monday, the big change to gold CFTC fund positions appeared to drive the market. The data showed that bullish bets on the metal had dropped to the lowest since March and was the single largest drop in the long position in six months.
This data suggests a disjointed and uncertain outlook in terms of speculative positioning across the precious metals, Standard Bank’s Leon Westgate said.
Despite the lack of near-term catalysts in the market, observers will continue to eye developments in Greece – a deal needs to be struck in June so the Mediterranean country can deliver payments due in July and August.
“[Our] base case is still for a deal to be eventually reached and for a Greek exit to be avoided. However, much will depend on how negotiations play out in the coming weeks,” UBS said.
This morning, the market shrugged off news over the weekend that the Chinese central bank (PBoC) lowered lending and deposit rates by 0.25 percentage points to 5.1 percent and 2.25 percent respectively to spur lending and help bolster growth in the faltering Chinese economy.
In other metals, silver was last down 18 cents at $16.23/16.28 per ounce, while platinum was $13 lower at $1,124/1,129 and palladium fell $15 to $779/784.
(Editing by Mark Shaw)
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