Disclaimer: All information on this section is of a general nature.
Before making any investment decision, you should consult your adviser.
Daily Resources Overview
Gold and silver prices are nearsteady in early-afternoon U.S. trading Tuesday. Gold prices hit athree-week low overnight, while silver fell to a three-month low. A higher U.S.dollar index that is closing in on its for-the-move high scored in Marchcontinues to limit buying interest in the precious metals markets. June goldfutures were last up $0.70 an ounce at $1,294.90. May Comex silver was lastdown $0.054 at $15.05 an ounce.
Asianand European stock indexes were mixed to slightly up in quieter tradingovernight, following Monday’s good gains. U.S. stock indexes are mixed atmidday. The U.S. indexes are at or near their recent multi-month highs and areenjoying solid price uptrends on the charts. That’s also bearish for thecompeting asset class, safe-haven metals.
Australia’scentral bank, the Royal Bank of Australia, on Tuesday left its monetary policyunchanged at the bank’s regular meeting. The RBA did warn that the Aussieeconomy is not meeting its inflation target and doing so may take a while.This continues a theme of very low, and possibly even problematic, inflation inthe major economies of the world. Low inflation is the enemy of raw commoditymarket bulls.
Theother key outside market today sees Nymex crude oil prices higher, and hittinganother 4.5-month high overnight and are trading above $62.00 a barrel.
The bottom line is that the geopoliticaluncertainty’s and hotspots which have been providing bullish market sentimentfor the precious metals still remains intact, and on result. As long as thesefactors linger, there will continue to be underlying support for the preciousmetals limiting any real strong downside moves. The Federal Reserve’s newdovish stance when added to the uncertainty of Brexit, and the looming onresult trade dispute between the United States and China have collectively beenextremely supportive of the precious metals complex as a whole. As long asthese factors are present, they should provide bullish market sentiment, aswell as curtailing any real price declines in gold.