Gold prices are modestly down and hit another four-week low below $1,200.00 in early U.S. trading Tuesday. The silver market fell to a two-month low overnight. Chart-based selling pressure has kicked in this week as the technical postures for both gold and silver have deteriorated recently. Precious metals are also pressured by a very strong U.S. dollar on the foreign exchange market that saw the U.S. dollar index hit a 1.5-year high on Monday. December gold futures were last down $2.00 an ounce at $1,201.40. December Comex silver was last up $0.004 at $14.025 an ounce.
Global stock markets were mixed overnight. Asian shares were down and European stock indexes were mostly up. U.S. stock indexes are pointed toward higher openings when the New York day session begins, following steep losses suffered on Monday. Volatility in the U.S. stock market has heated up again early this week. Many traders and investors are spooked by the recent sharp drop in crude oil prices.
Nymex crude oil futures prices are lower again today, hit an eight-month low overnight and are trading around $58.50 a barrel. The steep slide in oil prices is a bearish element for most of the raw commodity sector, as oil is arguably the leader of that sector.
Meantime, the U.S. dollar index is trading weaker today on a mild corrective pullback after soaring to a 1.5-year high on Monday.
European investors are unsettled as Tuesday is the day Italy’s budget is supposed to fall into line with the constricts of the European Union budget process. Meantime, reports said U.K. Prime Minister Theresa May has rejected the latest European Union Brexit proposal. The Euro currency fell to a 16-month low against the U.S. dollar on Monday.