Author: Paul Ploumis28 May 2015 Last updated at 04:04:56 GMT
(Kitco News) - Gold prices ended the U.S. day session not far from unchanged levels Wednesday. Prices did slip to a two-week low overnight. A modestly higher U.S. dollar index and weaker crude oil prices on this day were bearish “outside market” forces that once again cast a pall over the precious metals markets. August Comex gold was last down $1.20 at $1,186.50 an ounce. July Comex silver was last down $0.101 at $16.64 an ounce.
The U.S. dollar index traded steady to slightly higher Wednesday after poking to a four-week high overnight. The dollar remains in the market place spotlight. Most of the raw commodity sector and many financial markets are being held hostage by the daily machinations of the U.S. dollar index. The technical posture of the index has become more bullish recently, which suggests the index will at least challenge its early-springtime highs, if not push above them.
The strengthening U.S. currency also suggests crude oil prices have put in a near-term top, and that other raw commodity markets, including the precious metals, grains and softs, will languish in the coming weeks, or longer.
Greece and its debt problems are back on the front burner of the market place this week.
Reports say Greece will run out of money before its next debt payment is due, unless a new deal is struck with its creditors soon. Greece and its lenders are meeting in Brussels Wednesday and the rest of the week to hammer out a deal. The Group of Seven industrial nations will meet in Germany, beginning Thursday, to likely discuss the Greece matter, as well as other world economic and financial issues.
While the gold market is presently seeing very little safe-haven demand from the Greece debt matter, that could change in a hurry if the situation with Greece and its debt burden deteriorates.
There was no major U.S. economic data released Wednesday, which added to the directionless tone of gold and silver trading.
The London P.M. fix is $1,185.85 versus the previous A.M. fixing of $1,187.85.
Courtesy: Kitco News