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Gold prices are modestly lower in pre-U.S.-session trading Thursday. A calm geopolitical front and bearish near-term charts are keeping the yellow metal's price from rallying.
In overnight news, a report on Eurozone business and consumer confidence in June was very upbeat. The European Commission's June economic sentiment indicator came in at 111.1 from 109.2 in May. The June number was the highest in 10 years. That news helped keep the Euro currency in rally mode.
The Euro has made solid gains this week and is trading at a seven-month high.
A feature in the marketplace this week has been rising world government bond yields. Earlier this week central bank officials, many of whom were speaking at a conference in Portugal, sounded a more hawkish tone on their monetary policies. It appears the central bankers of the world are embracing the U.S.
Federal Reserve's notion that the time has come to start raising interest rates and winding down the extraordinary quantitative easing programs that have been in place for nearly 10 years.
The key "outside markets" on Thursday morning see Nymex crude oil futures prices firmer. Oil bulls are having a good week as short covering has been featured. However, the oil market bears still have the overall near-term technical advantage. Meantime, the U.S. dollar index is modestly lower early today and hit another seven-month low overnight. The greenback bears have the solid overall near-term technical advantage.
U.S. economic data due for release Thursday includes the weekly jobless claims report and the final estimate on first-quarter GDP.
By Jim Wyckoff, contributing to Kitco News; email@example.com