Gold Stable on Early Thursday Trading

Gold prices are moderately higher early U.S. trading Wednesday. Steady-to-weaker world stock markets today are helping to lift the competing asset class precious metals. August Comex gold was last up $7.90 an ounce at $1,253.70. July Comex silver was last up $0.211 at $16.585 an ounce.

World stock markets are seeing some selling pressure from swooning energy sector stocks due to falling crude oil prices recently. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.

Besides the recent slump in crude oil prices, another feature in the marketplace this week has been falling world government bond yields. Earlier this year many analysts and market watchers were looking for rising inflationary pressures to put central bank monetary policies back into more traditional postures regarding their interest rates. However, at mid-year most inflation numbers around the world have either held steady or even backed off a bit.

The key “outside markets” on Thursday morning see Nymex crude oil futures prices firmer on a tepid short-covering bounce after hitting a 14-month low on Wednesday. The oil market bears have the solid overall near-term technical advantage as prices are trading below $43.00 a barrel. Meantime, the U.S. dollar index is near steady early today. The index has stabilized this week and that’s good news for the greenback bulls.

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