Gold Prices Dip As Easing Hopes Fade In China
Gold prices were slightly lower Monday as hopes for quantitative easing from China’s central bank faded. Gold for December delivery was dipping $1.10 to $1,671.80 an ounce at the Comex division of the New York Mercantile Exchange.
The gold price traded as high as $1,679.30 and as low as $1,688.50 an ounce, while the spot price was down 70 cents, according to Kitco’s gold index.
“Traders were a little bit disappointed in China not implementing any [quantitative easing] over the weekend,” said Phil Streible, senior commodities brokerat RJO Futures.
Silver prices for September delivery were jumping 30 cents to $30.93 an ounce, while the U.S. dollar index was losing 0.04% to $81.59.
Investors have anticipated this week’s summit of central bankers at Jackson Hole, Wyo. Though analysts had been skeptical any signals of monetary stimulus would emerge from the meeting, last week’s Federal Reserve minutes suggested the Fed would consider a move in September.
Should Fed Chairman Ben Bernanke not implement any easing, the Fed will meet again later in September as it continues to monitor the economic situation in the U.S.
European central bankers will meet for the first time in more than a month next week as the European Central Bank will announce its first minutes of September. Investors are hoping to see some easing efforts from the eurozone.
Gold mining stocks were mixed Monday. Goldcorp (GG) was falling 0.22%, while Eldorado Gold (EGO) was rising 0.12%.
Among other mining stocks, Barrick Gold (ABX) was up 0.13%, while Yamana Gold (AUY) was down 0.59%. Kinross Gold (KGC) was shedding 0.55%.