Gold Pauses After Tuesday Sharp Gains; Silver Powers Higher

By Paul Ploumis (ScrapMonster Author)

April 21, 2016 02:43:52 AM

(Kitco News) - Gold prices ended the U.S. day session near steady Wednesday, on technical consolidation after posting solid gains Tuesday. Meantime, silver continued its upside assault and hit another 10.5-month high. June Comex gold was last up $0.20 at $1,254.50 an ounce. May Comex silver was last up $0.178 at $17.15 an ounce.

A strong rebound in crude oil prices Wednesday, after a lower start, added to the bullish sentiment in the precious metals markets today. Nymex crude oil futures hit a high of $42.51 as of early Wednesday afternoon. The other key “outside market” saw the U.S. dollar index higher Wednesday, on a corrective bounce from selling pressure in the index seen earlier this week.

World stock markets were mostly weaker Wednesday. China’s stock market closed sharply lower Wednesday, but well up from the daily spike low that spooked Asian market watchers. At one time, China’s Shanghai index was down 4.5% on the day, and ended the session down 2.3%. There was no single factor attributed to the sharp sell- off in the Shanghai index. U.S. stock indexes were slightly higher Wednesday afternoon.

Traders and investors are looking ahead to Thursday’s regular meeting of the European Central Bank. Many believe the ECB is, at some point down the road, prepared to initiate further monetary policy stimulus measures, following last month’s easing moves. However, most do not expect Thursday’s meeting to produce any major, new initiatives.

Courtesy: Kitco News