Gold Approaches Steady; Copper Climbs Ahead of Home-sales Data

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Gold Approaches Steady; Copper Climbs Ahead of Home-sales Data

US gold futures traded steady prices in early dealings on Monday, as the recent stability of the US dollar against other major currencies exerted bearish pressure on gold. Yet, on-going global geopolitical crises are forcing something of a safe-haven demand for the precious metal. New York copper rose.

December-delivery gold was up $0.90 early, trading at $1,281.20 am per ounce on the Comex. Spot gold last exchanged down at $1.00 at $1,280.25.

Markets are still under the dictates of geopolitical events. US military action in Iraq and the advance of the ISIS insurgents in the region continues to worry world powers, Forbes reported. Tensions over Ukraine and Russia and hostilities on the Gaza are also having an effect.

The am gold fix in London was $1,281.00 against the prior pm fixing of $1,277.25.

From a technical point of view, gold bears boast a near-term technical leverage as a decline for the past 7 weeks is still registering on the daily bar chart.

The price of copper in New York gained for the second day ahead of home-sales data in the US, the world’s second-biggest consumer of industrial metals.

A report from the Commerce Department will likely show that new home sales climbed 5.7% last month to an annualized rate of 429,000, after dropping in June, according to Bloomberg News estimates before the official data at 10 am in Washington. Last week, data indicated US housing starts ascended and existing home sales surpassed estimates from economists.

“Investors are waiting for today’s U.S. housing data,” Hiroyuki Kikukawa of Tokyo-based Nihon Unicom Inc. is quoted by Bloomberg as saying.

December-settlement copper advanced 0.1% to $3.227 per pound as of 7:26 in New York after adding 0.9% on Aug 22.  Trading was halted as CME Group Inc., the largest futures market, suffered a technical glitch at its Globex digital-trading markets.

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To contact the reporter of this story; Jonathan Millet at john@forexminute.com