By Paul Ploumis (ScrapMonster Author)
December 11, 2015 03:04:13 AM
(Kitco News) - Gold ended the U.S. day session modestly lower Thursday. Selling pressure was mostly due to crude oil prices dropping to a near seven-year low and a solid rebound in the U.S. dollar index, after strong losses seen by the index Wednesday. Along with the bearish outside markets on this day, the overall bearish chart postures for both gold and silver markets are also keeping the sellers very confident. February Comex gold was last down $4.40 at $1,072.10 an ounce. March Comex silver was last down $0.069 at $14.12 an ounce.
Traders and investors in many markets are casting a wary eye toward the beleaguered raw commodity sector, led by crude oil prices today dropping to an intra-day low of $36.52 a barrel. The next downside target for Nymex crude is the 2009 low of $33.20. The marketplace reckons that with the raw commodity sector in such a bust cycle at present, the overall collective world economy cannot be in good shape, either. The bust in the raw commodity sector is prompting serious concern about price deflation gripping the world’s economies in the months ahead.
In overnight news, the Bank of England left its interest rates unchanged at its latest meeting on monetary policy. No change in policy was expected.
A World Gold Council report says Russia and China central banks continue to buy up lower-priced gold to add to their reserve stockpiles.
A Wall Street Journal story Thursday said the marketplace sees an 85% chance the U.S. Federal Reserve will raise interest rates by 0.25% at next week’s FOMC meeting. That would be the first rate increase by the Fed in around nine years. The WSJ report said the Fed needs to carefully articulate the pace at which the Fed is likely to continue to raise interest rates in the months ahead. With the high likelihood of the rate rise coming next week, the marketplace will now be fretting about the pace of future Fed rate hikes.
Courtesy: Kitco News