Gold Pressured on Profit-Taking, Chart Consolidation

By Paul Ploumis (ScrapMonster Author)

March 22, 2016 01:16:15 AM

(Kitco News) - Gold prices on Monday saw more profit-taking pressure and backing and filling on the daily chart, following recent gains that pushed prices to an 13-month high less than two weeks ago. Improved investor risk appetite in the world marketplace recently is also a negative for safe-haven gold. April Comex gold was last down $9.00 at $1,245.20 an ounce. May Comex silver was last up $0.059 at $15.87 an ounce.

World stock markets traded steady to mixed to start an Easter-holiday-shortened trading week. Many world markets are closed on Friday. U.S. stock indexes were modestly higher and near three-month highs in afternoon trading.

Crude oil prices were firmer in afternoon trading and hovering around $40.00 a barrel. There are technical clues crude oil has put in a market bottom, and that’s bullish for the precious metals and the entire raw commodity sector. The long and frustrating bust in the raw commodity sector is showing signs of ending.

The other key “outside market” saw the U.S. dollar index trading firmer Monday afternoon. The dollar index on Friday hit a five-month low and the bears are still in near-term technical control.

Courtesy: Kitco News