Gold Ends Near Steady After Hitting 3.5-Month Low Overnight

(Kitco News) - Gold prices ended the U.S. day session near unchanged Tuesday, after hitting a 3.5-month low overnight. Prices are in a steep four-week-old downtrend on the daily bar chart as there is scant, fresh bullish fundamental news to be found. This is allowing the chart-based traders to dominate as the near-term technical postures for gold and silver have deteriorated. August Comex gold was last up $0.50 an ounce at $1,217.20. July Comex silver was last down $0.259 at $16.01 an ounce.

Gold prices did move up from the daily lows in late-morning trading, on some bargain hunting in the cash market and some short covering in the futures market.

World stock markets were mostly firmer overnight, and are ending what has been a good month of May for the world stock market bulls. The mostly “risk on” trading appetite during the month of May was a significant negative element for safe-haven gold. U.S. stock index futures were weaker in early-afternoon trading Tuesday, following a three-day holiday weekend.

Several U.S. economic reports out Tuesday did little to move the gold and silver markets.

As this week progresses, more important market events will unfold, including the European Central Bank monetary policy meeting on Thursday and the U.S. jobs report on Friday. The OPEC oil cartel also meets Thursday.

Courtesy: Kitco News