Gold prices fell -0.32% overall on Monday, after a rebound from its lowest point in the range of $ 1642 per troy ounce after U.S. retail sales data are positive. However reinforcement is still limited due to the tension of Spanish outlook on Thursday ahead of bond auctions this week, prompting profit-taking gold to cover losses on other assets. Fear of inability to get its finances in Spain under control has boosted the cost of bond insurance - in the event of default to the Spanish - to the highest levels record.
Others negative catalysts of gold are the economic slowdown in China, as well as the strengthening dollar factor, plus the physical gold demand from India which has not recovered significantly. Gold trading volume was still below the level of trade last year, even in the month of April only reached 61 percent of trading volume during the month of March. This indicates Gold fever mainly from China appear to have subsided.
Investment managers, including hedge funds and other large speculators have cut exposure to buy gold as much as 8.674 to 109 511 contracts. Technically, the failure of gold to penetrate resistant key US$ 1686 some time ago has been to reduce expectations of a bullish technical signal to reach US$ 1700 in the short term.
Therefore Gold is still potentially weaken, at least while waiting for fresh news from Spain. During a positive impression of economic stability, financial managers will tend to stay away from gold and into bonds with high yield. Concerns about the European financial back on along with the level of bond yields with maturities of 10 years and China's economic growth rate which disappointing would be an issue affecting the gold price movements.
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