Gold firmed overseas as the dollar came under renewed pressure. While price action for the yellow metal remains confined to last Friday’s range for now, the underlying technical and fundamental biases remain to the upside.
Softer stocks are providing an additional boost for gold, but here too, the trend remains unquestionably positive. Global shares are being weighed today by a more pronounced than expected slowdown in Chinese export growth, which is indeed cause for concern.
The NFIB Small Business Optimism Index rose to 105.2 in July. Chain store sales rose 2.4% in the week ended 05-Aug. JOLTS Job Openings for June and IBD/TIPP Economic Optimism Index for August come out later this morning. There is also a $45 bln 4-week bill auction and a $24 bln 3-year note auction.