Gold and silver back off on normal profit taking in futures mkts

Neww York (June 2)  Gold and silver prices are solidly lower in midday U.S. trading Tuesday. Some normal profit-taking-pressure was featured by the shorter-term futures traders today, in overall existing strong price uptrends. No chart damage was inflicted. Also keeping buyers of the safe-haven metals more leery on this day is stock market traders that appear to be wearing blinders as they push equities prices farther north--despite keen turmoil in the world. August gold futures were last down $18.10 an ounce at $1,732.30. July Comex silver prices were last down $0.652 at $18.175 an ounce.

Global stock markets were mostly firmer in overnight trading. U.S. stock indexes are mixed at midday. Stock markets are at present seemingly ignoring major storm clouds churning, including the Covid-19 pandemic that has severely crippled world economies, a looming “cold war” between the two largest economies in the world—the U.S. and China, and civil unrest in the U.S. that has exploded into violence not seen in over 50 years. Many market watchers are reckoning the strength of world stock markets is mainly due to the enormous injection of monetary stimulus by central banks into economies that sees much of that money flowing into equities. The juxtaposition of a rallying Wall Street and a struggling Main Street could have significant political implications down the road.

In other news, the U.S. Congressional Budget Office said a full U.S. economic recovery from the damage caused by the pandemic could take 10 years.

The important outside markets see the U.S. dollar index lower today and hitting another 2.5-month low overnight. The greenback is in a swoon due in part to the civil unrest in America. Currencies in countries that are more outside the present fray are benefitting, including the Australian and Canadian dollars and the British pound. Nymex crude oil prices are higher and trading around $36.35 a barrel. The yield on the benchmark U.S. Treasury 10-year note is currently around 0.68%.

KitcoNews