Gold Upsurge

On Monday, Gold has increased in Asia, as probabilities of a rate increase later this month by the FED seem to have reduced on the latest data.

Delivery of Gold for August on the Comex division of the NYMEX increased 0.53 percent to $1,249.50 a troy ounce.

Market players will be rotating their attention to a extremely expected speech by FED Chair Janet Yellen on Monday for additional clues on the scheduling of the next U.S. rate increase.

The last whole week before the Fed’s June 14-15 conference is fairly light on statistics, with the majority of the attention expected to fall on customer sentiment statistics on Friday to measure the health of the economy.

Delivery of  Silver futures for July increased 0.43 percent to $16.435 a troy ounce.

Furthermore, on the Comex, delivery of copper futures for July inched up 0.05 percent to $2.120 a pound.


China is to announce what will be carefully observed trade and inflation statistics later this week during continuing worries over the health of the world's 2nd largest economy.

The Asian nation is the world’s biggest copper user, accounting for approximately 45 percent of world consumption.

The previous week, gold prices increased over 2 percent on Friday, its largest one day increase in almost three months, as the U.S. dollar dipped following the release of gloomy U.S. nonfarm payrolls statistics dampened optimism over the strong point of the economy and dropped anticipations for a summer rate hike by the FED.

In May, the U.S. economy added just 38,000 occupations, the lowest improvement since September 2010 and far below anticipations for an upsurge of 164,000. 

In April, the economy generated 123,000 occupations, whose figure was reviewed from a previously increase of 160,000, according to the reports.

On Friday also, the Institute of Supply Management stated its non-manufacturing purchasing manager's index drop to 52.9 the previous month from 55.7 in April. 

It has been the sluggish reading ever since February 2014. Experts had anticipated the index to fall to 55.5.

The downbeat statistics possible pushed a June interest rate increase from the FED off the table, with traders appraising in just a 4 percent chance for a rate increase this month, downcast from 21 percent ahead of the data, according to the sources.

Chances for a July rate hike declined to 32 percent from 58 percent a day earlier, although September probabilities were at approximately 48 percent, against  66 percent on Thursday.

Gold is subtle to change in U.S. interest rates. A slow route to higher percentage is viewed as less of a threat to the gold cost than a rapid series of increases.


On Additional News 

On Monday, Oil prices pressed higher in European trade, recovering from the previous session’s losses, with Brent futures regaining the key $50-level as market players observed supply interruptions in Nigeria.

The Niger Delta Avengers militant group has demanded responsibility for three current attacks on Nigeria’s oil infrastructure over the weekend, promising to reduce output to zero.

On the ICE Futures Exchange in London, delivery of Brent oil for August increase  to an intraday peak of $50.28 a barrel. It last raised at $50.21 by 07:54GMT, or 3:54AM ET, up 57 cents, or 1.15 percent.

London-traded Brent plunged 40 cents, or 0.8%, on Friday, to settle at $49.64 after Organization of the Petroleum Exporting Countries unsuccessful to agree on a contract for a new production ceiling.