Gold prices are modestly lower in early U.S. futures trading Wednesday, as follow-through technical selling is featured. The key “outside markets” are also in a bearish posture for the precious metals on this day—a firmer U.S. dollar index and lower crude oil prices. Gold prices dipped to a six-week-low overnight. April Comex gold was last down $2.60 at $1,205.80 an ounce. March Comex silver last traded up $0.102 at $16.485 an ounce.
Reports overnight said there has been progress in talks between Greece and the European Union regarding Greece wanting to roll back some of its austerity measures. The reports said the present bailout plan would be extended for six months—meaning Greece will receive immediate funds. This news is deemed slightly bearish for the safe-haven gold market. Greece is on the verge of insolvency and needs a fresh infusion of financing fast. In what has become commonplace on EU sovereign debt matters, this latest issue has just seen the can kicked down the road and the problem will surface again. Many traders and investors have become numb to the EU sovereign debt crisis news, which is now several years old.
In a sign of how European investors feel about the prospects of Greece remaining a viable, payment-honoring EU country, German 10-year bonds on Wednesday sold at a record low average yield of 0.37%. Read that as keen safe-haven demand.
via Kitco
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019