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Gold Loses Early-Session Gains Amid Rebounding USD
May 6,2016 14:54CST
industry news
Gold prices ended the U.S. day session near steady levels Thursday.

By Paul Ploumis (ScrapMonster Author)

May 06, 2016 01:02:52 AM

(Kitco News) - Gold prices ended the U.S. day session near steady levels Thursday. An early “buy-the- dip” bounce following recent profit-taking selling pressure gave way to renewed selling interest as today’s session progressed. A rebound in the U.S. dollar index has been a bearish element for the precious metals. June Comex gold futures were last down $0.60 an ounce at $1,273.80. July Comex silver was last up $0.024 at $17.325 an ounce.

The key “outside markets” on Thursday saw the U.S. dollar index again higher on more short covering and bargain hunting after prices hit an eight-month low on Tuesday. If the greenback can post a weekly high close on Friday that would be an early clue that the dollar index has put in a near-term bottom. The rebound in the dollar index has put some selling pressure into raw commodity markets. Meantime, Nymex crude oil prices were higher in afternoon U.S. trading Thursday, but well off the session high and hovering just above $44.00 a barrel. As goes crude oil, so, too, will likely go the raw commodity sector.

Traders and investors are looking ahead to Friday’s U.S. jobs report for April from the Labor Department—arguably the most important U.S. economic report of the month. The key non-farm payrolls number is expected to show a rise of 205,000 in April. However, Wednesday’s weak ADP jobs number (up 156,000) calls into question whether the Friday jobs number can meet expectations. Look for more active trading in the markets in the immediate aftermath of the 8:30 a.m. eastern time release of the report.

Courtesy: Kitco News

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