Gold at lowest level in three and half months
Bullion metals registered big losses at Comex on Tuesday, 07 July 2015. Gold lost more than $20 an ounce on Tuesday, as sharp gains in the U.S. dollar helped send futures to the lowest finish since mid-March. Other metals also took a hit, with silver leading the losses as concerns over China's economic growth pressured prospects for metals demand.
Gold for August delivery on Comex fell $20.60, or 1.8%, to settle at $1,152.60 an ounce.
September silver sank 78.4 cents, or 5%, to settle at $14.69 an ounce, with prices tracking the most-active contracts at their lowest settlement since August 2009.
Negotiations between Greece and the EU/IMF continued Tuesday at an EU summit, despite the Sunday Greece no vote on new austerity measures. Markets' reactions to the no vote and the increasing likelihood Greece will exit the European Monetary System have not been extreme, so far. However, there is still some anxiety in the market place that appeared to become a bit heightened as the day progressed Tuesday. European and U.S. stock markets were weaker on Tuesday. The Euro currency was lower. The U.S. dollar index and U.S. Treasuries were higher on safe-haven buying.
A feature in the market place early this week is the sharp sell-off in the crude oil market, in which prices hit a three-month low. Prices are now bearing down on the $50-a-barrel mark, which seems likely to be hit in the not-too-distant future. The steep downturn in the crude oil market recently is a bearish omen for the rest of the raw commodity sector. It will be difficult for a raw commodity market to sustain a price uptrend when its leader, crude oil, is in a steep downtrend.
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