Gold Gains On Bargain Hunting, Bullish Charts
Gold prices ended the U.S. day session moderately higher Wednesday on a corrective bounce.
(Kitco News) - Gold prices ended the U.S. day session moderately higher Wednesday on a corrective bounce as traders once again “bought the dip” after Tuesday’s solid selling pressure. Gold bulls remain in firm near-term technical control of the charts, which is encouraging buying interest as such suggests the path of least resistance for prices will remain sideways to higher in the near term. August Comex gold was last up $8.70 an ounce at $1,343.90. September Comex silver was last up $0.249 at $20.42 an ounce.
Global stock markets were mostly firmer overnight as this week has seen a marked increase in investor risk appetite. U.S. stock indexes were just slightly lower in afternoon trading. World stock markets have made a dramatic rebound from the selling pressure that set in immediately after the late-June Brexit vote. The U.S. S&P 500 stock index is at a record high this week.
The key “outside markets” on Wednesday saw crude oil prices solidly lower after the International Energy Agency reported that record-high world crude oil stockpiles are threatening oil price stability. There was also a bearish weekly U.S. storage report today that showed U.S. crude oil stocks are at a record high. The U.S. dollar index was weaker today as trading is choppy in the index.
On Thursday the Bank of England meets to discuss U.K. monetary policy. Some believe the BOE will move to lower interest rates at the meeting, following the recent Brexit vote. New U.K. Prime Minister Theresa May was sworn in Wednesday.
Courtesy: Kitco News