Gold Loses Early Gains To Mild Profit-Taking, Chart Consolidation

By Paul Ploumis (ScrapMonster Author)

March 09, 2016 01:13:35 AM

(Kitco News) - Gold prices ended the U.S. day session near unchanged and gave back moderate early gains Tuesday. More mild profit-taking pressure was seen, as well as some backing and filling on the near-term charts. The yellow metal bulls are still enjoying the firm overall near-term technical advantage, which means the path of least resistance for prices remains sideways to higher. April Comex gold was last up $0.10 at $1,264.10 an ounce. May Comex silver was last down $0.193 at $15.435 an ounce.

There was keener risk aversion in the marketplace Tuesday and that did limit the downside price action in gold. World stock markets were mostly lower, pressured by weak import and export data coming out of China, the world’s second-largest economy. China’s exports showed their largest decline in five years in February. Imports were also down sharply in February.  U.S. stock indexes were slightly lower in afternoon trading and up from the daily lows.

The key “outside markets” on Tuesday saw the U.S. dollar index slightly higher and crude oil prices solidly lower, with Nymex April futures hovering just below  $37.00 a barrel.

The focus of traders and investors this week is the Thursday meeting of the European Central Bank. Many believe the ECB this week will announce further monetary policy stimulus measures by pushing interest rates further into negative territory, in an effort to jumpstart the moribund Euro zone economy.

Courtesy: Kitco News