Gold Hits 3-Week Low, On Strong Greenback, Rallying Stock Markets

(Kitco News) - Gold prices ended the U.S. day session lower and hit a three-week low Wednesday. The yellow metal was weighed down by a rallying U.S. dollar index this week and by the better risk appetite seen in the world marketplace the past couple weeks. August Comex gold was last down $13.60 an ounce at $1,318.70. September Comex silver was last down $0.397 at $19.61 an ounce.

Global stock markets were mostly firmer Wednesday, as traders and investors look ahead to Thursday’s meeting of the European Central Bank. The ECB is not expected to announce new monetary policy stimulus measures at this week’s meeting. However, it’s expected that ECB President Mario Draghi will lay out plans for future stimulus coming from the ECB. World stock markets have been buoyed this summer on ideas the major central banks of the world will continue their very easy money policies—especially after the Brexit vote in late June.

The key “outside markets” on Wednesday saw the U.S. dollar index slightly higher and hitting a four-month high. Nymex crude oil prices were also higher and hovering just above $45.00 a barrel.

Courtesy: Kitco News