Gold Sinks To 6-Mo. Low On Slumping Raw Commodity Sector, Strong Greenback
(Kitco News) - Gold prices are sharply down and have sunk to a nearly six-month low in late-morning action Friday. A slumping raw commodity sector in the face of a potential worldwide trade war among major global economies has hit raw commodity prices hard today. The Trump administration has today slapped new import tariffs on Chinese goods coming into the U.S. The gold market on this day has decided to act like a raw commodity instead of a safe-haven store of value, despite some risk aversion in the marketplace today. A surging U.S. dollar index that hit an 11-month high today is also working against the precious metals markets. The drop in gold below what was strong chart support at the May low triggered sell stop orders and weak long liquidation in the futures market, which is likely to drive prices even lower in the near term. August gold futures were last down $20.30 an ounce at $1,288.00.