By Paul Ploumis 10 Sep 2015 Last updated at 03:51:59 GMT
Gold prices hit four-week low during US day session Wednesday.
(Kitco News) - Gold prices ended the U.S. day session solidly lower and hit a four-week low Wednesday. The safe-haven metal on this day lost favor in the investment community amid a “risk-on” day in the market place, as world stock markets are generally in rally mode so far this week. December Comex gold was last down $16.70 at $1,104.30 an ounce. December Comex silver was last down $0.17 at $14.585 an ounce.
The key “outside markets” were also in a bearish daily posture for the precious metals Wednesday. Nymex crude oil futures were lower. There are still technical clues crude oil has put in a near-term market bottom. But the crude oil bulls need to step up and show fresh power very soon to keep those clues relevant. The other outside market saw the U.S. dollar index firmer. Trading in the USDX has been choppy recently.
China’s Shanghai stock index closed up 2.3% Wednesday after the Chinese government announced late Tuesday it would implement further measures to stimulate its flagging economy. Japan’s Nikkei stock index was up 7.7% on the day—the biggest daily percentage gain since 2008. European stock markets were also higher Wednesday. U.S. stock indexes were mixed Wednesday afternoon, after posting big gains Tuesday. Look for more volatile trading in the near term, following the recent market turbulence. Rallying stock markets worldwide pull investor interest away from safe-haven gold.
Focus of the marketplace is looking ahead to next week’s Federal Open Market Committee (FOMC) meeting. There is no clear consensus among traders and investors whether the Fed will make an interest rate hike at next week’s meeting, or wait until December, or later.
The London P.M. gold fix today was $1,109.85 versus the previous London A.M. fixing of $1,122.30.
Courtesy: Kitco News