Gold Fall as Goldman Sachs Says Prices May Drop Below $1,000

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Gold fell, trading near a five-year low, as Goldman Sachs Group Inc. said rising U.S. interest rates may lead to deeper losses.

A government report Monday showed American households kept spending in June, capping a stronger quarter for the biggest part of the economy, as incomes rose. The Federal Reserve signaled last week that it will probably raise rates this year as the labor market improves. Goldman in a report Monday reiterated that gold may fall below $1,000 an ounce, or more than 8 percent below Monday’s closing futures price.

Gold tumbled to a five-year low in July as Fed Chair Janet Yellen said the central bank is on track for raising rates for the first time since 2006, curbing the appeal of gold because it doesn’t pay interest like assets such as equities. The Bloomberg Dollar Spot Index gained in July by the most since March, reducing demand for bullion as an alternative asset. Money managers stayed net-short on bullion for a second week as of July 28, government data showed Friday.

Gold futures for December delivery declined 0.5 percent to settle at $1,089.40 an ounce at 1:44 p.m. on the Comex in New York, falling for a fourth day in five sessions. The metal fell to $1,073.70 on July 24, the lowest since February 2010.

Silver futures for September delivery dropped 1.6 percent to $14.515 an ounce on the Comex, the biggest loss since July 15.

Platinum futures for October delivery slid 1.8 percent to $967.10 an ounce on the New York Mercantile Exchange, the largest drop since July 7. Palladium futures for September delivery declined 1.3 percent to $603.20 an ounce.

Source : Bloomberg

Gold Declines as Goldman Sachs Says Prices May Drop Below $1,000

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Gold fell, trading near a five-year low, as Goldman Sachs Group Inc. said rising U.S. interest rates may lead to deeper losses.

Reports this week may show U.S. manufacturing expanded and payrolls increased, after the Federal Reserve signaled that it will probably raise borrowing costs this year as the labor market improves. Goldman in a report Monday reiterated that prices may fall below $1,000 an ounce, signaling a drop of about 9 percent.

Futures for December delivery fell 0.3 percent to $1,091.60 by 8:21 a.m. on the Comex in New York. The metal closed at a five-year low of $1,086 on July 24. Bullion for immediate delivery lost 0.4 percent to $1,091.53 in London, according to Bloomberg generic pricing.

Gold has fallen for the past six weeks in London, the longest run in a decade, as traders turned their back on the metal amid muted inflation and a resilient American economy. U.S. reports this week include manufacturing on Monday, factory orders Tuesday and the jobs data from the Labor Department on Friday.

The Fed, which has kept rates near zero since 2008, ends its next meeting Sept. 17.

After becoming bearish on gold for the first time since the U.S. government data begin in 2006, hedge funds and other money managers held a net-short position of 11,334 contracts as of July 28, according to Commodity Futures Trading Commission data. Investors are holding the least through bullion-backed exchange-traded products since 2009.

Silver futures declined 0.6 percent to $14.65 an ounce in New York. Platinum retreated 0.7 percent to $978 an ounce, while palladium gained 1 percent to $617.20 an ounce.

Source: Bloomberg

U.S. Stocks Decline as Apple Shares, Commodities Producers Slump

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U.S. stocks declined, after equities posted their best monthly gain since February, as commodities producers sank and Apple Inc. fell into a correction.

The Standard & Poor 500 Index retreated 0.3 percent to 2,097.97 at 4 p.m. in New York, after falling as much as 0.8 percent, to close above its average price during the past 100 days.

Commodities dropped after an official gauge of Chinese manufacturing slid to a five-month low and Iran said it will be able to bolster crude production within a week of sanctions ending.

The slide in equities accelerated Monday after the S&P 500 fell below its average price for the past 100 days, a level commonly watched by market technicians. The gauge last dropped below the 100-day moving average on July 24 during its longest losing streak since January. The S&P 500 is about 1.3 percent above its 200-day average, a level that has stopped the last two declines of more than 2.8 percent.

Apple fell for the ninth time in 10 days, sliding below its average price for the past 200 days for the first time since 2013 and extending its slide from a February high past 10 percent.

Source : Bloomberg

U.S. Stocks Decline Amid Earnings as Commodities Shares Slump

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U.S. stocks declined, after equities posted their best monthly gain in five, amid disappointing results from Tyson Foods Inc. and as commodities producers sank.

The Standard & Poor’s 500 Index fell 0.4 percent to 2,095.63 at 12:37 p.m. in New York, near its average price during the past 100 days. The Dow Jones Industrial Average lost 117.82 points, or 0.7 percent, to 17,572.04. The Nasdaq Composite Index decreased 0.3 percent.

Commodities dropped after an official gauge of Chinese manufacturing slid to a five-month low and Iran said it will be able to bolster crude production within a week of sanctions ending.

Source: Bloomberg

European Stocks Rise for 5th Day as Earnings Trump Greek Plunge

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European stocks climbed as improving earnings and economic indicators outweighed losses in Greek shares that resumed trading after a five-week suspension.

Heineken NV and Commerzbank AG climbed at least 2.3 percent after their results beat estimates. TomTom NV added 2 percent after people familiar with the matter said it’s exploring options that could lead to a sale. National Bank of Greece SA and Piraeus Bank SA slumped 30 percent, leading a record 16 percent drop in the ASE Index, as trading resumed with restrictions in place.

The Stoxx Europe 600 Index rose 0.8 percent to 399.44 at the close of trading. The equity measure earlier extended an advance after final readings showed output in Germany and the euro region increased more than initially estimated.

The Stoxx 600 capped its longest winning streak in two weeks, after climbing 4 percent in July as concern over Greece faded and companies announced deals and earnings. It briefly pared gains on Monday after a report showed U.S. manufacturing expanded less than forecast this month.

Among other stocks moving on corporate news, PostNL NV jumped 6.8 percent after posting profit that beat predictions. Rolls-Royce Holdings Plc gained 5.9 percent after people familiar with the matter said activist fund ValueAct Capital Management sees substantial potential for its profit growth. Abengoa SA tumbled 31 percent after announcing a capital increase.

Commodity shares fell the most among 19 Stoxx 600 groups, with Anglo American Plc and Glencore Plc declining more than 3.6 percent. Reports on Chinese manufacturing signaled a slowdown is deepening in the world’s second-biggest economy.

Source: Bloomberg