Gold Pressured By Stronger Greenback, But Bulls Eyeing U.S. Stock Market Sell Off

(Kitco News) – Gold prices are trading modestly down in late-morning U.S. action Thursday. The precious metals are being pressured by a rally in the U.S. dollar index to a new 2.5-month high, following a dovish European Central Bank meeting today that saw fresh monetary stimulus announced. That news sunk the Euro currency and boosted the greenback, and also benefitted the gold and silver market bears. However, the precious metals bulls are watching the selling pressure in the U.S. stock market today. If that selling pressure intensifies look for gold prices to push above unchanged. There are early technical clues that the price uptrends in the U.S. stock indexes are “rolling over,” which if proves to be the case would support buying interest in the safe-haven metals. April gold was last down $1.90 at $1,285.70.

By Jim Wyckoff
For Kitco News


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