Gold Down On Profit Taking, Risk-On Day, But Finishes Up from Daily Lows
Gold prices ended the U.S. day session down on profit taking from recent gains and amid a “risk-on†day in the marketplace.
(Kitco News) - Gold prices ended the U.S. day session down on profit taking from recent gains and amid a “risk-on” day in the marketplace. The yellow metal hit a new low for the week in early U.S. trading, but then rebounded off its lows on some bargain-hunting buying interest. August Comex gold was last down $11.70 an ounce at $1,332.00. September Comex silver was last down $0.093 at $20.32 an ounce.
Global stock markets were again mostly firmer Thursday as this week has seen a marked increase in investor risk appetite, amid ideas the world’s major central banks will continue to pump money into their economies. The U.S. S&P 500 stock index hit another record high Thursday.
The Bank of England held its regular monetary policy meeting Thursday and left interest rates unchanged, which was a bit surprising to many. Many expected the BOE to cut its main interest rate for the first rate cut since 2009. World stock markets did weaken just a bit after the BOE announcement. Gold also saw some added selling pressure after the BOE news.
The key “outside markets” on Thursday saw crude oil prices firmer on a short-covering bounce from recent selling pressure. The U.S. dollar index was weaker today as trading has turned choppy and sideways in the USDX. The bullish posture of these two outside markets on this day did not give much help to the gold and silver markets.
Courtesy: Kitco News