The precious metals complex is trading lower on the day, and with the exception of palladium, today’s lower pricing is a combination of selling pressure and a stronger dollar. The dollar index continues to strengthen, gaining over a third of a percent today, trading up 30 points and currently fixed at 91.65.
Although the dollar traded fractionally lower on the day, it is the highs achieved today along with the inability to sustain those new price highs that created a single day candlestick known as a shooting star.
Gold, silver, and platinum have closed lower today. However, gold is the only precious metal to have any selling pressure. Traders have bid the precious yellow metal fractionally lower today (-$0.40). Both silver and palladium had fractional upside ticks in terms of the buy-side of the equation.
Any hope for potential support and subsequent reversal in gold was short-lived as a strengthening U.S. dollar and a predominantly bearish sentiment took prices lower today. Gold futures are currently trading off by nine dollars to be fixed at $1,324 per ounce, a net decline of -0.67%.
My subscribers and readers of my daily column know that I have an intrinsic bias towards gold. This bias is in relationship to the finite quantity of gold when compared to fiat currencies.
Gold is trading unchanged on the day, but only until you factor in dollar strength. As of 3:15 PM Eastern standard time, physical gold is currently trading off by $4.30 and is fixed at $1,344.90. However, the KGX (Kitco Gold Index) reveals that dollar strength accounts for all of today’s $4.30 decline.
Gold prices traded higher on the day, although it was limited by a stronger U.S. dollar. The same cannot be said for silver and palladium. Although gold gained 0.21% on the day, those gains were dwarfed in comparison to silver’s 2.43% and palladium’s 2.11% daily gain today.
Today is a mixed bag, with gold futures trading modestly lower and physical gold gaining slightly. Gold futures based on the most active June 2018 Comex contract closed down by $0.50 on the day and is currently fixed at $1,350.20. At the same time, physical or spot gold is trading up by approximately $1.60 at $1,347.28
