June gold futures closed down $28.30, or 2%, to settle at $1,396.20 an ounce on the Comex division of the New York Mercantile Exchange. Prices marked their lowest close since April 19. Gold closed nearer the session low and hit a fresh three-week low yesterday and continues to trade in the red territory today in electronic trading. The key “outside markets” were again in a bearish posture for the gold market as the U.S. dollar index was higher and crude oil prices were weaker. The gold bears are in near-term technical control and gained some downside momentum with today’s close below the key psychological level of $1,400.00.
Whatever the long-run benefits of holding gold in a portfolio, the fact that the U.S. dollar and equities are showing such strength right now indicate that gold’s era is over.
July silver futures closed down 72 cents for the yesterday’s session, or 3.1%, to end at $22.66 an ounce. Prices closed nearer the session low, hit a fresh three-week low and closed at a fresh 31-month low close. The key “outside markets” were bearish for silver again as the U.S. dollar index was higher and crude oil prices were weaker. Silver bears are in firm overall technical control. Prices are in a seven-month-old downtrend on the daily bar chart. However, silver trades in the green territory today in electronic trading and it seems the metal’s price will remain a narrow range bound in the short term.
The U.S. stock indexes closed higher again today and are hovering at or near record or multi-year highs. UAE local markets outperform all other Gulf markets by growth in 2013 so far. The bull market in stocks rolls on. There are no early technical clues to suggest market tops are close at hand. Many traders and investors reckon that with interest rates worldwide extremely low, investing in the stock market is the only game in town that produces a decent return. The stock index bulls have the solid overall near-term technical advantage. The surging U.S. dollar on the foreign exchange market and the weak raw commodity sector, in general, continue to be a bearish weight on the commodity markets, but not for stock indexes. The U.S. dollar index hit a 9.5-month high Wednesday. A news report Wednesday said a survey of investment fund managers showed the vast majority of those money managers are shunning the raw commodity sector as an investment asset—obviously in favor of equities.
