Gold prices are still down and now trading just above last week’s ten-month low. A surging US dollar index which soared to another 13 years high overnight is actually pushing down the precious metal markets. In fact, it is the strong US dollar that keeps the price of gold down.
The safe-haven gold did not react to violence in Europe Monday. The violence included the assassination of Russia’s ambassador to Turkey and the terror attacks In Zurich and Berlin, which left many people dead. On the other hand, the European stock markets did see buying interest limited and the euro currency dropped, to a 13 year low overnight.
The majority of world stock markets are trading near record highs and it would not be surprising to see those stock indexes at least pause if there is not some profit-taking for the end of the year. Any significant pullbacks in world stock markets would be a bullish development for gold.
The other key outside markets is oil prices which seem to be picking up pace again.