Gold prices are solidly lower and near their daily lows in late-morning trading Tuesday, reports Kitco News.
Early selling pressure intensified following U.S.
economic data that appeared to be better than expected.
New home sales rose over
5% in July and the consumer confidence gauge was higher in August.
The U.S. dollar index climbed on to its early gains and is trading sharply higher on the day, which is also a negative for commodities.
However, the higher volatility in
much of the market place, which is likely to continue at least the rest
of this week, is an underlying bullish element for gold and will
likely limit its downside potential.
Comex gold for December delivery was down $17.20 an ounce at $1,136.50.
Meanwhile, strong gains in the U.S. stock market are pulling investor
interest away from shelter gold.
The S&P 500 added 36 points, or about 2%, to 1,930. The benchmark index slid into correction territory on Monday, after sliding to its lowest level since last October.
The Dow Jones Industrial Average gained 287 points, or 1.8 %, to 16,161 at the open, with nearly all 30 components climbing, after three days in which all fell.
The Nasdaq Composite advanced 118 points, or 2.6% to 4,644, led by big gains in Apple Inc., which jumped 4.9%.
Before the market open, futures for all three benchmarks were already significantly higher early in the morning, and the gains were extended after the People’s Bank of China lowered its benchmark interest rate and reduced its reserve requirement ratio by 0.5 percentage point.
The PBоC injected 150 billion yuan ($23.40 billion) into the financial system to ease selling pressure on the country’s stock market. The central bank’s interest-rate move came after Asian markets had closed. Meanwhile, China’s Shanghai Composite Index closed 7.6% lower at 2,964.97 on Tuesday.
