Gold Weaker on Corrective Pullback, Chart Consolidation
New York (Dec 11) Gold prices are moderately lower in early U.S. trading Thursday, on a downside technical correction and chart consolidation after Tuesday’s big gains. Still, the near-term technical postures for both gold and silver have markedly improved this week. February Comex gold was last down $6.50 at $1,223.00 an ounce. Spot gold was last down $2.40 at $1,224.25. March Comex silver last traded down $0.112 at $17.08 an ounce.
The market place is calmer as the U.S. trading day approaches Thursday. U.S. stock indexes are trading near unchanged levels. Crude oil prices are firmer on a corrective bounce after hitting five-year lows Wednesday. January Nymex crude oil futures dropped to a low of $60.43 a barrel Wednesday. The plunging price of oil has recently spooked the market place. World stock markets have sold off this week, partly due to the major drop in crude oil prices. The major downtrend in the raw commodity sector is also a worrisome development due to the deflationary implications—even though consumers are paying significantly less at the gasoline pumps.
In overnight news, Russia’s central bank raised interest rates by 1.0% in a move designed to prop up the flagging ruble, which is at a record low versus the U.S. dollar and has lost 40% of its value this year. Falling oil prices and Western sanctions against Russia have sunk the ruble.
Chinese economic leaders on Thursday pledged to forge ahead with market-based economic reforms, following a major meeting. The officials said they would keep China’s economic growth rate steady, which would be around 7.0% to 7.5% annual growth. However, many China watchers think China’s central bank will introduce monetary policy stimulus measures in the coming months. Chinese officials said Thursday there has been downward pressure on their economy and that there are economic risks.
U.S. economic data due for release Thursday includes the weekly jobless claims report, import and export prices, retail sales, and manufacturing and trade inventories.
Source: KitcoNews
