Sitting In The Calm Summer Ocean

Gold felt and acted directionless today as deep summer calm fell upon the market.

Indeed, while gold is down a small bit in afternoon trading, its loss is completely attributable to dollar strength.

There was little to support gold as a haven play. World hot spots seemed to simmer down.

Late on Friday Russia's Defense Ministry said it had ended military exercises in southern Russia, which the United States and the West had criticized as a provocative step in the Ukraine crisis.

Nevertheless, we probably haven't seen the last of Russian interference in Ukraine.

While there is some economic data due out this week, none of it will drive the precious metals markets. Retail sales figures are due out Tuesday, industrial production data on Wednesday, and figures on housing starts will be issued Thursday.

If something impressively unusual happens, naturally it will affect gold and silver. But we don't expect much drama.

Also nipping at gold's heels today were higher prices worldwide in equities. All indices in the three financial sectors were up, with particular strength seen in Asia and Europe. The Dow was more subdued but the NASDAQ was up around 0.7%. Oil found some traction around the world today.

All of that sapped any "real trading" interest in gold, although silver received a small boost on bargain hunting.

As always, wishing you good trading,