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Aug Gold Futures Backs Down After Scoring 2-Year High !

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Aug Gold Futures Backs Down After Scoring 2-Year High Thursday

 

Friday June 17, 2016 08:38

(Kitco News) - Gold prices are moderately lower in early U.S. trading Friday, on a corrective and profit-taking pullback after prices pushed to a two-year high of $1,316.80 an ounce, basis August Comex futures, on Thursday. Gold market bulls remain in firm near-term technical control. August Comex gold was last down $5.30 an ounce at $1,293.20. July Comex silver was last down $0.147 at $17.455 an ounce.

Next week’s U.K. vote on whether that country stays in or leaves the European Union remains on the front burner of the marketplace. The shocking assassination of a British Member of Parliament on Thursday has led some to believe the vote may be swayed to the “stay” side. While the Brexit vote will occur as planned next Thursday, official campaigning on the issue has been halted after the death of MP Jo Cox. She was a proponent of the U.K. remaining in the European Union. Recent U.K. polls had shown the “leave” camp leading the “stay” camp, which has created uncertainty and anxiety in the marketplace. This matter will continue to limit selling interest in safe-haven gold until it’s resolved. World bond market yields have also been tumbling as investors and traders also move into the perceived safer government bond markets.

The key “outside markets” on Friday find the U.S. dollar index weaker and Nymex crude oil prices firmer. However, the crude oil market hit a five-week low overnight and has seen selling pressure this week negate a price uptrend on the daily bar chart. The dollar index hit a two-week high Thursday and trading has been choppy to higher this month.

U.S. economic data due for release Friday includes new residential construction data.