Gold Comex futures prices hit a three-week low in early trading Wednesday. Bearish outside market pushes a stronger USD index and weaker crude oil prices are merging with a weak technical posture putting the gold sellers in charge. June Comex gold last trade dropped $17.70 at $1,406.80 an ounce. Spot gold price was last quoted a drop $17.30 at $1,409.00.
Overall, the rushing USD on the foreign exchange market and the weak raw commodity sector remains to be a bearish weight on gold price. Overnight news reported a review of fund managers revealed the vast majority of those money managers are sidestepping the raw commodity sector as an investment asset.
The Euro currency dropped and the USD index increased to a nine-month high on news of a weaker than estimated European Union gross domestic product (GDP) figure, in another overnight news. On behalf of the sixth quarter in a row, EU GDP came in at negative growth. Compared with the fourth-quarter of last year, the first-quarter EU GDP came in at below 0.2%,. The GDP data from the EU suggests the European Central Bank will keep its tough easing of its monetary policy.
The London previous P.M. fixing of $1,433.75 and A.M. gold fixing is $1,412.25.
The Japan Nikkei stock index forced to a five-year high as the yen continues its succession against the other main world currencies.
U.S. economic data will be announced Wednesday contains the weekly MBA mortgage applications review, the producer price index, the Empire State manufacturing review, Treasury international capital data, industrial production and capacity utilization, the weekly DOE energy stocks report, and the NAHB housing market index.
On the daily chart, gold prices are in a 7-month-old downtrend. The bulls are having an upside technical momentum, as of the bears still have technical advantages of gold in June. The bears downside prices under solid technical support is at $1,400.00. As for the bulls coming upside near-term prices above solid technical resistance is at the May high $1,450.00. First resistance was sighted overnight at $1,418.50 and then overnight high $1,429.40, while the first support was sighted at the overnight low of $1,400.00 and then at $1,390.00.