Gold and Silver Drifting Lower

Gold and Silver Drifting Lower

Brexit aside…there appears to be little risk aversion in the markets, leading to gold and silver drifting lower this morning, after firming up a bit yesterday afternoon. Both metals have been jumping off and then back to 12-month lows.

Overnight, all world stock markets reached multi-month highs, followed by the U.S. dollar’s strengthening (close to a 12-month high)has tended to suppress precious metals.

At the time of this post, August Comex gold futures were down $5.40 an ounce at $1240.80 and August Comex silver was down $0.172 at $15.765 an ounce.

Yesterday, the U.S. consumer inflation reading struck a six-year high (CPI at 2.9% annually)giving credence to those in the “The Fed will raise interest rates” camp who believe we will see the forecast total of four rate increases in 2018.

Meanwhile, outflows from Gold ETFs continued in July, surprising many analysts, who have expected gold to bounce off of the world’s geopolitical turmoil, are beginning to suspect that belief in the yellow metal’s safe haven abilities will return and bring a recovery at the end of the year.

Upcoming market headlines for today include the release of the U.S. economic data including import and export prices and the University of Michigan’s consumer sentiment survey.

Have a wonderful Friday.

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