Gold and silver deeply sink despite a "risk-off" trading day Tuesday
New York (Sept 7) Gold and silver prices are sharply lower in midday trading Tuesday. Heavy profit taking and weak long liquidation from the shorter-term futures traders were featured today after both metals' prices hit a around four-week highs last Friday. The key "outside markets" were also bearish for the metals today as the U.S. dollar index was solidly higher and crude oil prices were lower. The safe-haven metals bulls were sorely disappointed their markets could not catch a bid and in fact sold off sharply amid keener risk aversion in the marketplace to start the U.S. trading week. October gold futures were last down $36.40 at $1,795.10. December Comex silver was last down $0.427 at $24.38 an ounce.
Global stock markets were mixed in quieter overnight trading. The U.S. stock indexes are mostly lower in midday New York trading. It was time to get back to work for those North American and European traders and investors that had been coasting the past several weeks. With U.S. stock indexes not far below their recent record highs, market watchers are wondering if those gains can be extended in the coming weeks, during what history shows can be rocky times for the stock and financial markets. Market participants today may have gotten a taste of what's to come during the sometimes historically turbulent month of September.
Economic data highlights this week include scheduled speeches by some U.S. Federal Reserve officials and the regular monetary policy meeting of the European Central Bank on Thursday. Last Friday's downbeat U.S. jobs report has many thinking the Fed won't be able to taper its bond-buying as soon as many Fed officials want.
The key outside markets today see the U.S. dollar index solidly higher as the greenback tries to recover from recent strong selling pressure that pushed prices to a four-week low last week. Nymex crude oil futures prices are lower and trading around $68.25 a barrel. Meantime, the yield on the benchmark U.S. 10-year Treasury note is presently fetching 1.365%.
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