The financial system may have to get worse for the Fed to act, Meger said.
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In addition to the overall dollar strength, Meger also mentioned the outflows from exchange-traded funds are dampening demand.
FORBES: FOCUS: Silver Finds Short-Term Support, But Some See Big Picture As Down
In additional to technical considerations, some slight re-emergence of some European concerns is impacting the market, Meger said.
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The Chinese data prompted selling in industrial base metals, and this spilled over into the precious complex, Meger said.
FORBES: Gold On Defensive While Tracking Euro; Technical Weakness Also Cited
The Cyprus vote is the immediate focus for the market, said Dave Meger, director of precious metals with Vision Financial Markets.
Against this backdrop, Spanish bond yields fell on a day that the country sold 12- and 18-month T-bills, Meger pointed out.
FORBES: Gold Hits Two-Month High As Euro, Oil, Grains Rise; Gain Accelerates On Chart Buying
Dave Meger, director of metals trading with Vision Financial Markets, cited news that Chinese authorities are injecting more money into their economy.
FORBES: Gold Hits Two-Month High As Euro, Oil, Grains Rise; Gain Accelerates On Chart Buying
The stronger gold market is also anticipating the outcome of a two-day meeting of the U.S. Federal Open Market Committee that winds up Wednesday, Meger added.
Still, the weekend news flow itself would not explain the huge jump in gold prices, said Dave Meger, director of metals trading with Vision Financial Markets.
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Ahead of time, some traders may have worried that recently stronger-than-forecast economic data might have prompted some kind of language from the Fed that could hint at less accommodation, Meger said.
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Dave Meger, director of metals trading at Vision Financial Markets, said for the short to medium term, silver prices are likely to be looking to establish some range, with rallies likely to be sold, but buying coming in under the market.
FORBES: FOCUS: Silver Finds Short-Term Support, But Some See Big Picture As Down
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