Investing.com – Gold futures extended losses on Monday, slumping to a seven-day low as a sharp decline in crude oil prices eased concerns over oil-led inflation, reducing the appeal of the precious metal.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,526.95 a troy ounce during U.S. morning trade, shedding 0.33%.
It earlier fell as much as 0.49% to trade at USD1,524.05 a troy ounce, the lowest price since June 2.
Crude oil for delivery in July extended sharp losses from the previous session, dropping 0.92% on the New York Mercantile Exchange, to trade at USD98.18 a barrel, hovering close to a three-week low and diminishing the precious metal’s appeal as a hedge against oil-led inflation.
Global financial service provider Credit Suisse said in a report earlier that while the recent uptrend remains intact, gold prices look increasingly vulnerable for a pullback.
“Gold’s inability to rise above USD1,550 an ounce last week despite several attempts points to weakness at current levels and suggests a pullback may be on the cards in the coming days.”
The report added that other downside risks include mounting stock-market losses, which could force some investors to sell gold for liquidity.
Meanwhile, Richard O’Brien, chief executive of Newmont Mining, the world’s second largest gold producer, expected gold prices to rise to USD1,600 an ounce by the end of the year, on growing demand from Asia's burgeoning middle class.
Speaking at the World Economic Forum on East Asia on Sunday, Mr. O’Brien said that, “I'm a firm believer that the gold price has not reached its peak. Five years from now, $USD2,000 gold will probably be in reach.”
Elsewhere, silver for July delivery tumbled 1.7% to trade at USD35.56 a troy ounce during U.S. morning trade, while copper for July delivery dipped 0.24% to trade at USD4.031 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,526.95 a troy ounce during U.S. morning trade, shedding 0.33%.
It earlier fell as much as 0.49% to trade at USD1,524.05 a troy ounce, the lowest price since June 2.
Crude oil for delivery in July extended sharp losses from the previous session, dropping 0.92% on the New York Mercantile Exchange, to trade at USD98.18 a barrel, hovering close to a three-week low and diminishing the precious metal’s appeal as a hedge against oil-led inflation.
Global financial service provider Credit Suisse said in a report earlier that while the recent uptrend remains intact, gold prices look increasingly vulnerable for a pullback.
“Gold’s inability to rise above USD1,550 an ounce last week despite several attempts points to weakness at current levels and suggests a pullback may be on the cards in the coming days.”
The report added that other downside risks include mounting stock-market losses, which could force some investors to sell gold for liquidity.
Meanwhile, Richard O’Brien, chief executive of Newmont Mining, the world’s second largest gold producer, expected gold prices to rise to USD1,600 an ounce by the end of the year, on growing demand from Asia's burgeoning middle class.
Speaking at the World Economic Forum on East Asia on Sunday, Mr. O’Brien said that, “I'm a firm believer that the gold price has not reached its peak. Five years from now, $USD2,000 gold will probably be in reach.”
Elsewhere, silver for July delivery tumbled 1.7% to trade at USD35.56 a troy ounce during U.S. morning trade, while copper for July delivery dipped 0.24% to trade at USD4.031 a pound.