Author: Paul Ploumis
22 May 2015 Last updated at 03:30:12 GMT
(Kitco News) - Gold prices ended the U.S. day session moderately lower Thursday. The yellow metal bulls were disappointed that “outside market” forces were in a bullish posture for gold today—lower U.S. dollar index and sharply higher crude oil prices—yet gold prices could not rally. This suggests the gold market remains firmly gripped by technically oriented bears. June Comex gold was last down $4.70 at $1,204.00 an ounce. July Comex silver was last up $0.037 at $17.15 an ounce.
It was a busy day for U.S. economic data Thursday. Yet, the market place was generally un-phased by the reports, which were a mixed bag.
A feature in the market place this week has been the resurgent U.S. dollar index, despite today’s pullback in the greenback. If the dollar index rebounds and on Friday closes at or near the weekly high close, such would be significantly bearish for the raw commodity market bulls. It would suggest the recent downside pressure on the dollar index was just a technical correction in a longer-term price uptrend that is still up and that is still alive and well. If the dollar index sees selling pressure on Friday and a lower close at or near the weekly low close, it would hint choppy and sideways trading in the index is likely, and that greenback bulls have indeed lost some longer-term technical strength. Such would be bullish for the raw commodity sector. Most raw commodity prices are priced in U.S. dollars on the world market. When the dollar appreciates against the other currencies, it makes those raw commodities more expensive to purchase in non-U.S. currency.
The London P.M. fix is $1,205.00 versus the previous A.M. fixing of $1,209.60.
Courtesy: Kitco News