Gold price down, hits 4-week low on chart selling, long liquidation

New York (Dec 2)  Gold prices are down and hit a four-week low in midday U.S. trading Thursday. The near-term chart posture for the gold market is deteriorating now, and that has invited some technical-based sellers into the market. Also, weak-handed longs in the gold futures markets are being forced to liquidate their positions amid the recent sell off. A slumping crude oil market this week is also a negative for the metals markets. February gold was last down $17.20 at $1,767.30 and March Comex silver was last up $0.036 at $22.375 an ounce.

Global stock markets were mixed to weaker in overnight trading. The U.S. stock indexes are higher at midday—also a negative for safe-haven gold. The U.S. stock indexes have recovered some of their late-Wednesday losses that came after news that a case of Omicron was discovered in California. That news was not surprising but still rattled the stock market. Overnight news that the World Health Organization said vaccinations would offer at least some protection against the new strain helped assuage worries on the matter. Also, reports say Omicron is no more severe than the other coronavirus strains and may be milder. However, by no means has the marketplace reached calm on the matter. Don't be surprised to see more markets volatility in the near term as more becomes known about Omicron.

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