Gold backs off record highs on profit taking, equities rebound

NEW YORK (April 22) Gold prices are down and losing altitude at midday and have lost solid early gains that saw the market hit another record high of $3,509.90, basis June Comex futures. Profit taking from the shorter-term futures traders is featured, much of which is prompted by a solid rebound in the U.S. stock indexes today. Silver prices are solidly up at midday. June gold was last down $16.30 at $3,409.00. May silver prices were last up $0.534 at $33.045.

The U.S. stock indexes posted a strong rally today when reports surfaced that the U.S. Treasury secretary said the U.S.-China trade impasse is not tenable and is likely to de-escalate.

Importantly, these recent much bigger daily price moves in gold are one early clue this very mature bull market run is close to climaxing and that a near-term market top may be close at hand, from a time perspective, more so that a price perspective. Still, the speculative bears would be fools to stand in front of this steaming locomotive.

The key outside markets today see the U.S. dollar index solidly up on a rebound after hitting a three-year low Monday. Nymex crude oil futures prices are solidly higher and trading around $65.00 a barrel. The yield on the benchmark 10-year U.S. Treasury note is presently at 4.375%and his dipped a bit today.  

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