Gold Sinks To 6-Mo. Low On Slumping Raw Commodity Sector, Strong Greenback

(Kitco News) - Gold pricesare sharply down and have sunk to a nearly six-month lowin late-morning action Friday. A slumping raw commodity sector in the face of apotential worldwide trade war among major global economies has hit rawcommodity prices hard today. The Trump administration has today slapped newimport tariffs on Chinese goods coming into the U.S. The gold market on thisday has decided to act like a raw commodity instead of a safe-haven store ofvalue, despite some risk aversion in the marketplace today. A surging U.S. dollar index that hit an 11-month high today is alsoworking against the precious metals markets. The drop in gold below what wasstrong chart support at the May low triggered sell stop orders and weak longliquidation in the futures market, which is likely to drive prices even lowerin the near term. Augustgold futures were last down $20.30 an ounce at$1,288.00.

By Jim Wyckoff

For Kitco News

Follow @jimwyckoffjwyckoff@kitco.comwww.kitco.com 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.

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