(Kitco News) - Gold prices ended the U.S. day session solidly lower and scored a four-week low Tuesday. The recent uptrend in the U.S. dollar index remains a bearish outside market force for the precious metals markets. The dollar index hit a seven-week high today. A rally in the U.S. stock market Tuesday also pulled away buying interest in the safe-haven gold market. June Comex gold futures were last down $22.00 an ounce at $1,229.00. July Comex silver was last down $0.173 at $16.25 an ounce.
The U.S. dollar index has been trending higher for the past three weeks, which has dented upside price action in many raw commodity markets. A strong U.S. home sales report Tuesday that showed the best pace of sales in eight years in April also worked in favor of the U.S. dollar bulls. The report falls into the camp of the U.S. monetary policy hawks, who want to see the Fed raise interest rates sooner, and more often. There appears to be growing odds the Fed will raise U.S. interest rates in June, and those notions are also bearish for the precious metals markets.
World stock markets were mixed and choppy overnight. U.S. stock indexes were posting solid gains Tuesday afternoon. Global equity traders continue to closely watch crude oil prices, which were firmer Tuesday afternoon. Trading days on which oil prices are lower have tended to limit buying interest in stocks. Notions of an ongoing world oil glut are keeping crude gains in check. Oil traders are awaiting the June 2 OPEC meeting in Vienna, Austria.
Courtesy: Kitco News
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