Precious Metals Finished Lower On Profit Taking
US precious metals prices finished pit trade lower Wednesday, on short term profit-taking, and a technical correction following the recent gains.
Dec COMEX Gold was last down 9.60 at 1,332.90 oz
Spot Gold was last quoted down 7.20 at 1334.50 oz
Dec COMEX Silver last traded down 0.190 at 22.60 oz.
US economic data failed to move markets.
Rising short-term interest rates in China recently are starting to worry the market some. Rising rates could be a signal from Chinese banking officials’ getting set to tighten policy. That would dampen demand from the world’s 2nd-largest economy, a big importer of raw commodities. An overheated housing market in China is worrisome to traders.
The US Feds position QE-3 is a Bullish factor for precious metals and the raw commodity sector. The extra money being printed by the Fed will seek out investment assets and price inflation down the road including precious metals.
Starting in November the European Central Bank (ECB) will begin stress tests on 130 financial institutions in the European Union. It is a fact that EU banks have a lot of non-performing loans on their books. Recent EU economic data presents a mixed picture, showing it is on the edge of recession. If the results of the upcoming EU bank stress tests are not positive, that could quickly erode investor confidence in the European Union’s financial system overall.
The US Dollar Index (DXY) traded just slightly higher Wednesday from a 10.5-month low overnight.
NYMEX Crude Oil futures were sharply lower and hit a 7 wk low overnight. Prices have fallen below the 100.00 mark this week. These 2 Key outside markets were Bearish for precious metals.
The London PM Gold fix is 1,331.25 Vs the prior PM fix at 1,333.00.
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