Gold Silver Reports (GSR) — Gold Slightly Up After Big Downdraft Last Friday – Gold prices are slightly higher in early-afternoon U.S. trading Monday. The market saw a tepid corrective and short-covering bounce after sharp losses suffered on Friday that saw the yellow metal hit a six-month low. There was also some risk aversion in the marketplace today that might also be giving gold some mild support. August Comex gold futures were last up $2.00 an ounce at $1,280.40. July Comex silver was last down $0.025 at $16.45 an ounce.
A major bearish weight on the precious metals recently has been the resurgent U.S. dollar index, which hit an 11-month high last Friday.
Much of the raw commodity sector got hit hard last Friday on world trade concerns. Traders are still in a risk-averse mood early this week. World trade war worries continue to be on the front burner of the marketplace, as the world’s two largest economies—the U.S. and China—square off. Unfortunately for the gold market bulls, their yellow metal now wants to act like a raw commodity instead of a safe-haven store of value. Still, the trade tensions worldwide could support the gold market if the situation deteriorates further.
The key “outside markets” today see the U.S. dollar index firmer and not far below last week’s 11-month high. Meantime, Nymex crude oil prices are modestly higher and are trading just above $65.00 a barrel.
