Gold Price Weaker Amid Calmer Geopolitical Scene Recently
New York (June 29) Gold prices were ending the U.S. day session moderately lower Thursday. A quieter world geopolitical front in recent weeks and bearish near-term technical charts are presently working against the gold market bulls. August Comex gold was last down $3.90 an ounce at $1,245.20. September Comex silver was last down $0.101 at $16.69 an ounce.
An important feature in the marketplace this week has been rising world government bond yields. Earlier this week central bank officials, many of whom were speaking at a conference in Portugal, sounded a more hawkish tone on their monetary policies. It appears the central bankers of the world are now embracing the U.S. Federal Reserve’s notion that the time has come to start raising interest rates and winding down the extraordinary quantitative easing programs that have been in place for nearly 10 years. The “easy money” from the central bankers the past several years has been a bullish underlying factor for the precious metals markets. With the QE programs from the central banks now ready to wind down further, it’s a bearish element for the metals.
The key “outside markets” on Thursday saw Nymex crude oil futures prices slightly higher. Oil bulls are having a good week as short covering has been featured. However, the oil market bears still have the overall near-term technical advantage. Meantime, the U.S. dollar index was lower again today and hit another seven-month low overnight. The greenback bears have the solid overall near-term technical advantage. The precious metals bulls are frustrated this week’s big plunge in the greenback did not provide more upside price support to their markets.
One matter the gold bulls are monitoring very closely is the wobbly nature of the world stock markets this week—especially U.S. stock indexes. When the air does finally start to come out of the bullish and now seemingly over-inflated equities balloon, the competing asset class precious metals will benefit.
Source: KitcoNews
