Comex gold futures prices closed solidly lower Wednesday on heavy profit-taking pressure after hitting an all-time record high on Tuesday. A firmer U.S. dollar and higher Treasury yields Wednesday added to downside price pressure in the gold market. Some near-term technical damage has also been inflicted in gold the past two days. February Comex gold last traded down $26.60 at $1,382.40 an ounce. Spot gold last traded down $19.50 at $1,382.00.
The U.S. dollar index traded firmer Wednesday, which was modestly bearish for gold. The dollar index is in a four-week-old price uptrend on the daily bar chart and technical odds are increasing the index has put in at least a near-term low. The greenback has benefited recently from ongoing financial woes in the European Union.
Rising U.S. Treasury bond and note yields this week have also boosted the U.S. currency and helped to somewhat pressure gold. The higher returns on U.S. government debt have served to pull in some fresh investor demand for U.S. Treasuries and away from gold.
The London P.M. gold fixing was $1,385.50 versus the previous P.M. fixing of $1,420.00 an ounce. (more)
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