Commodities: Gold slides as dollar strengthening continues

Gold prices slid on Monday as investors continued to be concerned about the strengthening dollar. Gold for June delivery dropped 1.3% to $1,185.30 an ounce.

IG analyst Chris Beauchamp said: “We can safely say that the rally in precious metals has run its course for the time being, as economic gravity reasserts itself and the US dollar finds fresh buyers. The pattern of lower highs is seen once again, as gold and silver both move into reverse gear.”

Meanwhile, Brent futures fell 0.2% to $56.30 at the end of Monday’s session, while ICE WTI futures decreased 0.6% to $48.58.

CMC Markets analyst Jasper Lawler said: “Crude oil extended losses despite more trouble in Yemen as it becomes clear supply-lines won’t be disrupted by the conflict. Focus is shifting to Iranian nuclear talks that should a deal be struck, lead to the lifting of sanctions and add to the global oil supply-glut.”

Over on LME, three-month copper futures increased 0.6% to $6,103.00 a tonne. Beauchamp said: “Copper however is in demand thanks to Chinese stimulus talk, but any new efforts by the PBoC are unlikely to resemble the gargantuan efforts of old.”

Iron ore prices remained low Monday night that analysts feel may push for a floor in the bear market. Iron ore prices for immediate delivery at Tianjin fell 2.2% to $52.90 per tonne.