Author: Paul Ploumis10 Apr 2015 Last updated at 05:34:01 GMT
(Kitco News) - Gold prices ended the U.S. day session moderately lower again Thursday. A strong rally in the U.S. dollar index has once again put the precious metals market bulls on the defensive. Gold and silver bulls have now lost their recently gained upside technical momentum. June Comex gold was last down $8.40 at $1,194.70 an ounce. May Comex silver was last down $0.269 at $16.185 an ounce.
The U.S. dollar index traded sharply higher Thursday on good follow-through buying from Wednesday’s rebound. FOREX traders deemed the latest FOMC minutes from Wednesday afternoon as a bit more hawkish than expected and the greenback appreciated against the other major currencies. The FOMC minutes showed a divided Fed when it comes to the timing of raising U.S. interest rates. Upon having time to digest the FOMC minutes, the market place also remains divided on whether a U.S. rate hike will be coming at the June FOMC meeting, or later in the year. The Fed funds rate futures still shows a very low probability of a U.S. rate hike in June, and European stock traders keyed on that.
The other key “outside market” found crude oil prices higher Thursday on a corrective bounce following strong losses Wednesday. Still, crude oil prices have worked up from the multi-year low scored in mid-March, to suggest a market bottom is in place.
The London P.M. gold fix is $1,194.80 versus the previous A.M. fixing of $1,196.00.
Courtesy: Kitco News