London gains crimped by banking sector

Thursday, June 26, 2014

European stocks struggled to hold on to their opening levels as selling pressure dominated today’s trading session. London’s blue chip index was dragged lower by the banking sector after news of a fresh lawsuit in the US against Barclays saw the share price decline as much as 8.8% lower throughout the day, closing lower for the 13th straight session, while Standard Chartered shed as much as 7.2% after warning of a 20% fall in first half profits.

At the time of writing, Wall Street equities were trading lower with financials dragging benchmark indices down. Market participants reacted tentatively to the string of economic data releases today. The Kansas City Fed manufacturing index dropping to 6 in June from a prior reading of 10, while personal spending fell short of expectations of 0.4% growth in May, accelerating by half that amount.

The hesitant mood has seen support for gold hold firm around $1,315/oz as intraday declines towards $1,305/oz this week have struggled to take hold. Prices seem to be settled in a $20 range between $1,305 and $1,325 and investors are likely to want to hold off from committing significant positions either way at least until central bankers around the world offer further clarity.

Gold prices find firm support around current range

XAU Curncy Gold Spot Oz 2014 06 26 16 11 31

Topics: Equities, Gold
More from: Kash Kamal