U.S. Dollar Stunting Gold PricesPosted 04/22/2019 10:24AM CT |
Precious metals gold and silver have seen a slight collapse as the week of April 22 begins. Last week, we saw June gold fall $31.10 bring its price down to $1,277.20 an ounce. Not to be outdone by gold, May silver decided to fall as well, losing 29 cents and bringing the price down to $14.91. Market speculators believe this is due to strong signs of growth in U.S. indices and the USD. The S&P 500 hit 2900 for the first time since October, coupled with the continued run of the USD dollar has provided some resistance for gold. In a spot in Kitco News, George Gero said that gold futures have been stunted by the USD. He went on to add that the dollar is trading up around 97 and if international investors want to be players in the stock market rally, they need to buy the dollar. We’ll continue to watch gold, but as the dollar stays on this run, many speculators have shifted their outlook to bearish.
Gold Jun ’19 Daily Chart