Gold Price Hits 12-Mo. Low Amid Dearth Of Bullish News

New York (June 28)  Gold and silver prices are trading modestly lower in early U.S. dealings Thursday. Gold hit a nearly 12-month low overnight. Gold bulls need a good dose of bullish fundamental news. Chart-based sellers in the futures markets have been emboldened this week, amid price downtrends in place for gold and silver. However, both markets are now technically oversold on a short-term basis and due for decent rebounds very soon. Also, the big rally in crude oil prices recently suggests the raw commodity sector has bottomed out and will see better days just ahead. Many raw commodity prices at present are being viewed as value-buying opportunities, on a longer-term basis, including the precious metals. August gold futures were last down $2.50 an ounce at $1,253.60. July Comex silver was last down $0.116 at $16.035 an ounce.

World stock markets were mostly weaker overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. Global trade war fears continue to somewhat limit buying interest in world equity markets.

In overnight news, the Indian Rupee currency hit a new all-time low against the U.S. dollar, in part due to the spike in oil prices the past week. The strong dollar against the Rupee is likely limiting Indian demand for gold (priced in U.S. dollars on the world market). India is a major gold consumer, second only to China.

The U.S. data point of the week is today’s final estimate of first-quarter gross domestic product, which is seen coming in at up 2.2%, year-on-year.

The key “outside markets” today find the U.S. dollar index slightly lower after hitting a 12-month high overnight. Meantime, Nymex crude oil prices are slightly higher and trading just below $73.00 a barrel. Oil prices Wednesday hit a 3.5-year high.

U.S. economic data due for release Thursday includes the weekly jobless claims report, the GDP report and the Kansas City Fed manufacturing survey

KitcoNews

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