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