Gold prices fell on a strengthening dollar - ZENMoney

Brent Crude Prices rose marginally due to a rally in equity markets after strong economic data comming in from US. The market is awaiting for the US EIA data on wednesday, which is expected to show a fall in US commercial crude oil stocks by 1.7 mnbls.Agloomy demand outlook stemming from fears of a liquidity crunch in China and the US Federal Reserve's plans to roll back its stimulus along with less chance of reduced US imports from Canada as part of a Canadian pipeline came back online kept a lid on gains.

Gold prices fell due to a strengthening dollar on the back of a raft of positive economic data comming in from US along with rising optimism on the strength of the US economy coupled with reinforced expectations on Fed Reserve monetary stimulus program and a lowered forecasts from Morgan Stanley. The positive data capped the yellow metal's earlier gains after China's central bank made assurances about liquidity risks.

Silver Prices fell due to a rising dollar after a jump in US consumer confidence June data to its highest level in more than five years along with a rise in US new single-family homes data to their highest level in nearly five years in May. The reports of a slowdown in the Chinese economy dragged further.

Base metals prices rebounded as concerns over China's cash crunch eased after the comments from People's Bank of China that interbank liquidity risk is largely under control and volatility is temporary. A better than expected data comming in from US supported the market?s rise further. However, the market is catious ahead of US GDP data which is scheduled on Wednesday.

Source : Equity Bulls

Keywords