Gold Prices Down, At 6-Month Low, Amid Little Risk Aversion

New York (June 26)  Gold and silver prices are lower in early U.S. trading Tuesday. Gold hit a six-month low and silver hit a seven-week low. Despite the threat of a major world trade war on the horizon, the marketplace is not seeing keen risk aversion—at least not enough to boost the safe-haven metals. Instead, gold and silver are following their raw commodity counterparts lower on worries of less world trade in raw commodities if a full blown trade war breaks out between the U.S. and the other major economies of the world. August gold futures were last down $11.20 an ounce at $1,257.60. July Comex silver was last down $0.158 at $16.17 an ounce.

World stock markets were mixed overnight. U.S. stock indexes are also pointed toward narrowly mixed openings when the New York day session begins. Traders and investors worldwide are still jittery amid the U.S.-China trade dispute that shows no signs of ebbing. Conflicting comments from Trump administration officials on Monday, regarding sanctions against Chinese firms, only added more uncertainty to the matter.

China loosening its monetary policy this week has some in the marketplace wondering if the Chinese government is devaluing its currency, the yuan, in order to counter the negative impact of U.S. trade tariffs on China’s overall trade.

The key “outside markets” today find the U.S. dollar index higher. Meantime, Nymex crude oil prices are slightly higher and trading above $68.00 a barrel.

U.S. economic data due for release Tuesday includes the weekly Johnson Redbook and Goldman Sachs retail sales reports, the S&P/Case-Shiller home price index, the consumer confidence index, and the Richmond Fed business survey.

KitcoNews

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