Gold Lower Ahead of Central Banks

Gold prices are modestly lower in early U.S. trading Tuesday, on some follow-through selling pressure after notching a 10-month low Monday. With the U.S. Dow Jones Industrial Average at a record high and other world stock markets being pulled along for the ride, traders and investors remain in upbeat moods heading into the holidays. That’s bearish for the safe-haven gold market. The daily price charts for gold and silver are also in bearish territory. February Comex gold was last down $3.30 an ounce at $1,173.30. March Comex silver was last down $0.004 at $16.89 an ounce.

The key “outside markets” on Tuesday see the crude oil market lower on a corrective pullback from recent strong gains that took prices to a six-week high on Monday. The
U.S. dollar index is trading higher today on a modest rebound from solid losses posted Monday, which do begin to suggest the index has put in a near-term top. These two markets are in a bearish daily posture for the precious metals markets.

Global stock markets were mostly firmer overnight, following the lead from New York’s higher close Monday, where the Dow Jones Industrial Average hit another record high. European and Asian financial shares showed some recovery from recent losses, amid Italy’s “no” vote on constitutional reforms. Asian stock markets were also lifted on relief that the Italian no vote did little to rile the world marketplace. U.S. stock indexes are pointed toward narrowly mixed openings when the New York day session begins.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, revised productivity and costs, the international trade report, manufacturers’ shipments and inventories, and the IDB/TIPP economic optimism index.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza