Make Kitco Your Homepage

Bannockburn: 'gold is weaker amid some profit-taking'

Kitco News

Editor's Note: With so much market volatility, stay on top of daily news! Get caught up in minutes with our speedy summary of today's must-read news and expert opinions. Sign up here!

(Kitco News) - Global equities pulled back overnight, the U.S. dollar strengthened and gold eased on profit-taking, said Bannockburn Global Forex. “New two and a half month highs in the S&P 500 yesterday failed to have much sway in the Asia-Pacific region and Europe today as U.S.-China tensions escalate and profit-taking set in,” analysts said in a research note. “Perhaps it is a bit of ‘buy-the-rumor, sell-the-fact’ type of activity on the back of upticks in the preliminary PMI [Purchasing Managers Index] reading and hesitancy about pushing for what appeared to be breakouts.” The MSCI Asia Pacific Index snapped a four-day advance, and U.S. stock-index futures are trading lower in overnight screen activity. The U.S. dollar is higher against all of the major world currencies. “Gold is weaker amid some profit-taking after unable to close above $1,750 for the past four sessions,” Bannockburn said. “Support is seen near $1,725.” As of 7:38 a.m. EDT, spot metal was $12.10 softer to $1,736.30 an ounce.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.