Profit taking, improved risk appetite pressure gold prices

NEW YORK (June 16) Gold prices are lower in midday U.S. trading Monday, after hitting a five-week high overnight. Risk appetite has improved a bit to start a U.S. holiday-shortened trading week, evidenced by higher stock markets in the U.S. and overseas. Profit taking from the shorter-term futures traders is also featured in gold, following recent price gains. Silver prices are near steady. August gold was last down $33.90 at $3,418.90. July silver prices were up $0.05 at $36.40.

U.S. stock indexes are solidly higher at midday. The Israel-Iran war continues, which is keeping the marketplace somewhat pensive but not panicky. The two countries have been in on-and-off armed conflict for decades. One analytical firm said as long as crude oil prices don’t spike sharply higher, traders and investors will not get overly anxious. The wild card would be if Iran somehow blocks the Strait of Hormuz, which accounts for around 20% of crude oil shipments passing through it.

There is a Group of Seven meeting early this week in Canada. Meantime, the Fed’s FOMC meeting is this week, but the Fed is not expected to cut interest rates.

The key outside markets today see the U.S. dollar index weaker. Nymex crude oil futures prices are weaker and trading around $71.50 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently around 4.45%.  

KitcoNews