Gold prices are seeing strong selling pressure and hit a three-week low in morning U.S. trading Wednesday, as worldwide investor and trader risk appetite has up-ticked on this day. Also, the key “outside markets” are in a bearish posture for the precious metals today, as the U.S. dollar index is higher and crude oil prices are weaker. April Comex gold was last down $27.20 at $1,221.40 an ounce. May Comex silver was last down $0.515 at $15.37 an ounce.
There has also been some near-term technical damage inflicted in gold Wednesday, as the price uptrend on the daily bar chart has been negated, which has set off some chart-based selling pressure, including sell stop orders being triggered in the gold futures market.
World stock markets stabilized Wednesday, with European stock markets recovering after selling off in the immediate aftermath of the Brussels terror attacks Tuesday. U.S. stock indexes were pointed toward slightly higher openings when the day session begins.
In overnight news, the German government auctioned a 30-year bond Wednesday that fetched a record low average yield of 0.94%. That’s an indication of the keener risk aversion that European investors are exhibiting at present. German government debt is considered to be the safest asset among most European bond investors.
