Gold slides further
Gold fell lower on Monday, July 11, 2016. It was the third straight day of losses for the precious metal. This is the longest losing streak for gold since the United Kingdom voted to leave the European Union on June 23, 2016.
Gold futures for August expiration fell 0.13% on Monday, while silver, platinum, and palladium maintained their gains. Gold closed at $1,356.60 per ounce.
Silver futures for September expiration rose another 1% after rising for three days. Silver closed at $20.30 per ounce. Platinum and palladium ended the day at $1,108.10 and $625.80 per ounce, respectively.
Economic numbers that came out on Friday, July 8 provided support to the US economy. Overall Market sentiment seemed relieved, and gold lost its haven appeal. Gold is often seen surging during increased times of uncertainties such as the Brexit.
Interest rate hike may not happen
The US jobs growth surged in June as manufacturing employment increased. But concerns over global growth continued, which may keep a Fed interest rate hike at bay.
So gold and the other precious metals that are non-interest-bearers may have a competitive advantage. The opportunity cost of precious metals may be hampered if Treasuries rise.
Miners have mixed reactions
Precious metal miners had a mixed day on Monday, July 11. Some fell, and a few rose. AngloGold Ashanti (AU) and Coeur Mining (CDE) rose, while Barrick Gold (ABX) and Franco-Nevada (FNV) fell. These four companies together make up 13.8% of the changes in the VanEck Vectors Gold Miners ETF (GDX).