Gold prices are moderately lower and hit another six-month low in early-afternoon U.S. trading Wednesday. Silver prices are slightly lower and hit a four-week low. The near-term technical postures for both metals have deteriorated the past week, which is inviting the chart-based sellers into the futures markets. August Comex gold futures were last down $4.00 an ounce at $1,274.60. July Comex silver was last down $0.008 at $16.315 an ounce.
The safe-haven gold market can’t hold a bid despite some risk aversion seen in the marketplace this week, due to worries about a global trade war. It seems the specter of less global commerce in raw commodities if a trade war would break out is trumping safe-haven buying. Gold bulls are frustrated because at present their metal is acting like a raw commodity instead of a safe-haven asset.
A strong U.S. dollar is also working against the precious metals markets. The U.S. dollar index hit another 11-month high overnight. Since gold is priced in U.S. dollars on most world markets, any appreciation of the greenback makes the metal more expensive to purchase in non-U.S. currency.
The other key “outside market” today finds Nymex crude oil prices firmer and trading just above $65.00 a barrel. Oil traders are looking ahead to the late-week OPEC meeting, at which time Saudi Arabia and Russia are expected to announce they will increase oil production.
Read more via Gold, Silver Prices Down On Technical Selling | Kitco News
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