Gold Price Rebounds from Slow Week with Strong Monday Performance Posted by Brian Ford on June 09, 2015
The gold price rebounded strongly on Monday, with the gold spot price up $5.20 by 2pm EST and climbing by as much as $9.90 at one point during the trading session. Gold’s rebound broke a three-week downtrend, and sparked short position covering by some gold investors. Gold’s rebound was also attributed to bargain-hunting by technical investors (chart hawks).
The silver spot price, meanwhile, traded in a wide zone that ranged from a low of $15.88 to a high of $16.11, before settling in the $16.00-$16.05 per ounce region. At $15.88, the silver spot price matched a 5-week low.
Competing factors caused excessive intraday fluctuation for gold and silver alike. While the U.S. dollar index lost ground compared to a basket of other currencies (an inherently bullish prospect for the gold price), news that China’s exports are down 2.5% in the last year limited gold and silver price gains. The news from Beijing put liquidation pressure gold and silver investors around the world because China is the world’s leading importer of raw commodities like gold and silver.
Regarding the long-term price prospects for gold and silver, French think tank OECD reported today that the United States is among a handful of large nations with “struggling” economies, along with Brazil, Canada and China. A weak economy could be bullish for gold in the long run. In the short-term, investors will be watching the soon-to-be-released employment trends index, as well as the dollar index, to estimate future gold price movement.
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