GOLD DROPS AS DOLLAR RISES
The Gold price is on track for a 5.5 percent drop in September, giving up nearly all gains made in 2014. This will be Gold’s sharpest monthly decline in more than a year. Macquarie analyst Matthew Turner said, “Gold bulls' worst nightmares involve a rampant dollar and surging real interest rates, and this macro-trend is currently being fuelled by the expectation that the [European Central Bank] policy meeting on Thursday, and Friday's U.S. employment data will highlight the gulf in performance between the [eurozone] and U.S. economies.”
The European Central Bank meeting Thursday is a big news item for Gold and stocks, with analysts looking for an announcement on quantitative easing in the eurozone. That expectation comes after the eurozone inflation rate fell to a five year low. Friday’s nonfarm payrolls report will also be key for markets in the way of economic data this week.
At 9 a.m. (ET), the APMEX Precious Metals spot prices were: