Gold Weaker on Slower Trading as New York Shuts Down

The price of Comex gold is trading slightly lower in a subdued trading atmosphere early Monday after a major storm has shut down much of the U.S. eastern seaboard, including public transit and markets in New York City.

Outside markets are bearish for precious metals early Monday, though surveys put forward by Reuters and Bloomberg indicate a predominantly bullish sentiment on the week by analysts and precious metals dealers.

U.S. gold futures for December delivery traded down $1.40 to $1,710.60 per troy ounce. The spot price of gold drifted $1.40 to $1,710.25 per troy ounce as Comex silver for December deliver also traded down $0.206 to $31.84 per troy ounce.

The major news of the market place is the impact of Hurricane Sandy on the East Coast of the U.S. The New York Stock Exchange and New York futures exchanges are closed, though some electronic trading of New York markets on Monday is still ongoing. With virtually all of New York City shut down, trading activity will be lighter during the week.

Traders and investors await Friday’s U.S. employment report, which will be one of the most important economic events of the week.

The U.S. dollar index traded modestly higher in early Monday trading after the index hit a fresh six-week high Friday and closed the week at a bullish level on perceived safe-haven demand. Dollar bears retain a near-term technical advantage, according to Forbes, though bulls are gaining upside momentum.

U.S. economic data for release on Monday includes the Chicago Fed Midwest manufacturing survey, personal income and outlays, and the Texas manufacturing outlook survey.

The London A.M. gold fixing is $1,712.00 against the previous fix at $1,716.00.

Prices continue to hover near a six-week low and have been trending downward on the daily bar chart for four weeks. The bulls’ next upside breakout price point is a close above technical resistance at last week’s high of $1,731.20. There continues to be strong support on the downside at $1,700.00 per troy ounce.

Silver futures for December delivery are also down, hovering around a seven-week low. Technical resistance exists at last week’s high of $32.50 per troy ounce and support is strong at $31.00 per troy ounce on the downside of the trade.

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