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Gold hits 7 week low

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Gold Sees Follow-Through Selling, Hits 7-Week Low

Wednesday May 25, 2016 08:36

(Kitco News) - Gold prices are modestly lower and scored a seven-week low in early U.S. trading Wednesday. Follow-through technical selling pressure is featured as the near-term technical postures for both gold and silver markets have significantly deteriorated this week. The precious metals bulls are wondering if their markets can once again show the resilience that had been seen in recent weeks, to stop the bleeding. The recent rally in the U.S. dollar index remains a bearish outside market force for the precious metals markets. June Comex gold futures were last down $4.20 an ounce at $1,224.90. July Comex silver was last up $0.10 at $16.35 an ounce.

Gold prices have shed about $75.00 an ounce this month, amid worries the U.S. Federal Reserve will raise interest rates in June. The June Fed rate-hike notions have been a bullish element for the U.S. dollar.

Another feature in the marketplace at mid-week is crude oil prices that are near seven-month highs, with Nymex crude oil futures closing in on $50.00 a barrel. The near-term uptrend in crude prices has helped to rally world stock markets this week. Global equity markets were mostly firmer overnight, with U.S. stock indexes also pointing to higher openings when the New York day session begins. While crude prices are trending higher at present, there are veteran oil market watchers that firmly believe world oil supplies are still very burdensome and that the rally in oil will fizzle out soon.