Gold Price Modestly Lower On Profit Taking, But Well Up From Daily Lows
New York (Nov 3) Gold prices ended the U.S. day session just modestly lower Thursday and well up from the sharp losses seen in early trading. Profit-taking was featured. The early stronger selling pressure in gold and silver markets saw traders very willing to buy the dips, as the near-term technical postures for both metals has turned significantly more bullish this week. December Comex gold was last down $5.50 an ounce at $1,302.70. December Comex silver was last down $0.328 at $18.365 an ounce.
Gold also saw some early selling tied to a U.K. court that ruled the government would need a vote from U.K. Parliament to officially start to leave the European Union (Brexit). The ruling could delay the process of the U.K. pulling out of the EU. The news could delay the Brexit process and may push the window of uncertainty on the matter down the road.
Some weaker U.S. economic data Thursday also aided the precious metals market bulls, as it fell into the camp of the monetary policy doves. The October ISM non-manufacturing report came in at 54.8 versus 57.1 in September. A reading of 56.0 was expected in October.
Slumping crude oil prices recently are lending selling pressure to world stock markets and it’s also a bearish element for the raw commodity sector, including the metals. Nymex crude oil prices have dropped to a five-week low of $44.37 Thursday. Prices have shed over $8.00 a barrel since mid-October. The other key outside market saw the U.S. dollar index trading weaker Thursday. The greenback has seen keener selling interest this week after hitting an 8.5-month high last week.
The approaching U.S. presidential election is garnering more and more attention from the world marketplace. Polls show Donald Trump has made good gains against Hillary Clinton the past week. The specter of a U.S. President Trump is causing uneasiness in world markets. That has benefitted the safe-haven gold market but has put some downside pressure on world equity markets.
Traders and investors are awaiting what is arguably the most important U.S. economic report of the month: Friday’s employment report from the Labor Department. The key non-farm payrolls figure is expected to come in at up 170,000 in October.
Technically, December gold futures prices closed nearer the session high and saw profit taking after hitting a four-week high on Wednesday. The gold bulls still have the slight overall near-term technical advantage. Prices are in a four-week-old uptrend on the daily bar chart.
Source: KitcoNews
