Gold Price Hits 4-Week Low, Pressured By Bearish Outside Markets
New York (Aug 24) Gold prices are down and hit a four-week low in early U.S. trading Wednesday. Some sell stop orders were triggered in the futures market after key near-term technical support levels were breached. Also, the outside markets are in a bearish posture for the precious metals on this day, as crude oil prices are lower and the U.S. dollar index is higher. December Comex gold was last down $10.70 an ounce at $1,335.60. December Comex silver was last down $0.125 at $18.935 an ounce.
Nymex crude oil futures prices are lower in early U.S. trading today. Crude prices are still in a near-term uptrend, however. It appears Nymex oil prices are stuck in a trading range between $40.00 and $50.00 a barrel. Meantime, the other key outside market finds the U.S. dollar index firmer and hovering not far above last week’s seven-week low.
World stock markets were narrowly mixed in quieter trading overnight. U.S. stock indexes are pointed toward firmer openings when the New York day session begins. The world marketplace is looking ahead to the Federal Reserve’s annual symposium held later this week in Jackson Hole, Wyoming. Fed Chair Janet Yellen speaks at the event on Friday. While it’s hoped she will shed new light on the timing of any future interest rate increase from the U.S. central bank, many think her speech will not yield much fresh insight.
The marketplace is in the grips of the summer doldrums, which means quieter and lackluster trading conditions in many markets. Such is likely to continue until after the U.S. Labor Day holiday in early September.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the monthly house price index, existing home sales, and the weekly DOE liquid energy stocks report.