Home / Metal News / Gold Falls on Profit Taking, Bearish Outside Markets

Gold Falls on Profit Taking, Bearish Outside Markets

iconOct 22, 2015 16:25
Source:SMM
Gold and silver bulls are likely to have slight near-term technical advantage although prices ended lower on US day session Wednesday.

By Paul Ploumis (ScrapMonster Author)

October 22, 2015 04:10:08 AM

(Kitco News) - Gold prices ended the U.S. day session lower on some profit-taking pressure Wednesday, following recent gains. The key “outside markets” were also in a bearish posture for the precious metals today, as the U.S. dollar index was slightly higher and crude oil prices were lower. The gold and silver bulls still have the slight near-term technical advantage in their markets, but they need to show fresh power soon to keep it. December Comex gold was last down $11.00 at $1,166.50 an ounce. December Comex silver was last down $0.207 at $15.71 an ounce.

There has been no major, markets-moving news in the world marketplace this week, which has let the chart-based traders have more influence in the metals markets.

A feature in markets action Wednesday was the big drop in the Chinese stock market. The Shanghai stock index was down over 3% on the day. There was no single, significant factor that led to the sell-off in Chinese shares. Reports said investors in China just got spooked. Other Asian stock markets were not impacted by the big drop in China stocks. European stock markets did see some spillover pressure from the decline in China’s stock market.

In Europe Wednesday, a sale of two-year German government bonds fetched a yield of minus 0.26%. The negative yield underscores there is still keen investor unease in the European Union, as investors are willing to pay the German government to keep their money. The negative German bond yields are one more worrisome element on the price deflation front in the Euro zone.

Courtesy: Kitco News

gold and silver prices

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All