[Au Price]Gold Again Pressured by Bearish Charts, Outside Markets

By Paul Ploumis 06 Aug 2015 Last updated at 02:20:28 GMT

(Kitco News) - Gold prices ended the U.S. day session moderately lower Wednesday in choppy trading. The key outside markets were once again bearish for the precious metals today, as the U.S. dollar index was firmer and crude oil prices were lower. The dollar index hit a 3.5-month high today and crude oil prices are hovering near a four-month low. A firmly bearish technical chart posture for the precious metals is also keeping buyers leery.

December Comex gold was last down $5.30 at $1,085.50 an ounce. September Comex silver was last down $0.002 at $14.555 an ounce.

Gold moved up from its overnight lows just after the open of U.S. trading when the July ADP jobs report showed a rise of 185,000, which was a slight miss to the downside of market expectations. The ADP report is a precursor to Friday’s more important U.S. jobs report for July from the Labor Department. The key non-farm payrolls number in Friday’s report is expected to be up 215,000. Friday’s jobs report and the one in September will be extra important to the market place, as the Fed weighs whether to raise interest rates at its September FOMC meeting.

Gold prices once again drifted back lower at mid-morning when a stronger-than-expected U.S. ISM non-manufacturing report came in stronger than expected.

A feature in the market place this week is the resurgent U.S. dollar index. The greenback got an added boost Tuesday when reports said Atlanta Fed President Dennis Lockhart, a voting member of the Federal Open Market Committee, told the Wall Street Journal the Fed is ready to raise U.S. interest rates in September. The Fed official’s comments also helped to pressure the gold market and U.S. Treasuries.

Reports continue to surface that with gold prices recently hitting a 5.5-year low, demand for coins and physical gold from individual investors has significantly increased around the world.

The London P.M. gold fix is $1,085.10 versus the previous A.M. fix of $1,086.50.

Courtesy: Kitco News