GOLD FUTURES ADVANCE FURTHER INTO$1300 TERRITORY Gold futures bolstered in electronic trade Tuesday, adding slightly to the metal’s heftiest one-day rally in more than a year. Gold for December delivery, which is now the most-active contract, moved greater by 90 cents, or 0.1%, to $1,338.20 an ounce. On Monday, August gold futures increased $43.10, or 3.3%, to $1,336 an ounce on the Comex division of the New York Mercantile Exchange. That represented both the biggest one-day percentage and biggest dollar hike since June 29, 2012. The settlement was also the highest for a most-active contract since June 19 of this year, according to FactSet data. Contributing to Monday’s leap was heavy short covering and new technical buying, “as buy-stops were hit when prices pushed well above what was stiff chart resistance at the $1,300 level,” Kitco senior analyst Jim Wyckoff wrote in a late-day roundup. The rally on Monday “has left gold parked at the technical resistance level formed by its 50-day moving average and its May 20 lows. A clear break above this resistance would encourage technical traders to the view that a more significant technical rally could be in prospect,” CMC Markets chief market analyst Ric Spooner told clients early Tuesday. A fall in the U.S. dollar against major rivals also supported gold. A lower greenback makes the metal and other commodities priced in dollars less expensive for holders of other currencies. Gold had risen over the past three sessions after Federal Reserve Chairman Ben Bernanke said it was too early to determine whether the central bank will slow down the pace of asset purchases at its September meeting. Monetary-stimulus measures aimed at encouraging economic growth have been considered supportive for gold prices. Bernanke’s remarks suggesting that stimulus could remain in place a little longer than previously anticipated “helped to put the wheels in motion” for gold’s recent run higher, EverBank assistant vice president Mike Meyer wrote in daily update Monday. “The next couple of Fed meetings should have a significant impact as to the near-term direction of metals, as any hints of procrastinating plans to taper should act as a springboard, but anything to the contrary would tend to keep it suppressed,” Meyer wrote. The Fed’s next meeting is slated for July 30 and 31. For the year, gold prices are still down 20%, largely on concerns that strengthening in the U.S. economy would spur the Fed to taper its asset purchases. Record outflows from gold exchange-traded products logged earlier this year reflected investor worries about dialed-down stimulus. In other metal-futures trade Tuesday, September silver prices dropped down by 9 cents, or 0.4%, to $20.43 an ounce following Monday’s surge of $1.05, or 5.4%. September copper jumped 1 cent, or 0.3%, to $3.19 a pound, and October platinum acquired $6, or 0.4%, to trade at $1,454 an ounce. September palladium shed $2.95, or 0.4%, to price at $747.50 an ounce. Source: mt5/
Posted on: Tue, 23 Jul 2013 05:50:21 +0000
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