Gold starts off the week in positive territory as oil prices fall over 4 percent overnight on news that the largest oil producers ended their weekend meeting without a deal. The world’s largest exporter of oil, Saudi Arabia, had expected to get an agreement at the meeting on Sunday that would put a freeze on oil output production levels but Iran is continuing to increase output following the lifting of the sanctions against them. Therefore, in turn, we start Monday with lower oil prices and weakness in the equity markets.
Also, helping give the price of gold a boost, is a weaker dollar and strong inflows into the gold ETFs, reversing a three day redemption pattern that was witnessed at the end of last week. Gold ETF’s now stands at a year high of almost 58.4 million ounces held.
Silver, Platinum and Palladium are in the red this morning as gold seems to be receiving all the attention from the precious metal investors.
Some Wall Street precious metal day traders have expressed an interest in trading oil instead as the volatility has increased in that market and gold seems to be locked in a trading range with little price movement.
Author Name: Walter Pehowich
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