Comex Gold Extends Early Losses to Trade Sharply Lower
Comex gold futures are trading sharply lower and near the daily low as prices have extended early losses. A strong U.S. dollar index that hit a fresh 4.5-month high Wednesday and crude oil prices that have hit a fresh 6.5-month low are bearish “outside market” forces working against the precious metals Wednesday. Overall it’s a “risk-off” day in the market place Wednesday, and that’s bearish for the raw commodity markets, including gold and silver. The gold market bulls are hoping to see some fresh safe-haven buying demand surface amid the keener trader/investor anxiety regarding the European Union debt and financial crisis. An EU summit meeting Wednesday evening is the latest EU development for which the market place is awaiting an outcome. The gold market bulls have also faded, technically, following a brief show of strength late last week. June gold last traded down $31.50 at $1,544.60 an ounce.