Gold Ends Up At 6-Week High, On More Safe-Haven Demand, Bargain Hunting: Gold prices ended the U.S. day session moderately higher and scored a six-week high Tuesday. Safe-haven demand and bargain hunting continue to flow into the gold market, which in turn have also worked to improve the chart posture for the precious metal. December Comex gold was last up $6.50 at $1,251.20 an ounce. Spot gold was last quoted up $4.10 at $1,251.50. December Comex silver last traded up $0.191 at $17.545 an ounce. There is a bit more risk appetite in the market place early this week. Apple’s corporate earnings late Monday handily beat the street’s forecast. Also, China on Tuesday reported its third-quarter gross domestic product grew by 7.3%, on an annual basis. That figure was slightly better than market expectations but was still the slowest pace of growth for China in five years. There was also industrial production data out of China, which came in at up 8% in September. That figure was also above expectations. The economic data coming out of the world’s second-largest economy will be a bullish underlying factor for the raw commodity sector Tuesday, including the precious metals. Corporate earnings reports are in the spotlight for the U.S. stock market this week, and so far those reports have been more bullish than bearish, collectively. Meantime, the buzz in Europe is not if, but when the European Central Bank will announce a big quantitative easing plan for EU monetary policy. That has somewhat assuaged investor fear in the EU. The events that really spooked the market place last week—Ebola, slowing world economies and worries about another sovereign debt crisis in the European Union—have not just faded away. There are also still geopolitical hotspots in the world that could flare up quickly. Most traders and investors—especially the shorter-term ones—are like sheep and tend to follow the herd. That’s what happened in last week’s stock market sell-off, and it will happen again. Those events continue to provide a floor under the safe-haven gold market. The London P.M. gold fix was $1,250.25 versus the previous London A.M. fixing of $1,251.75. Technically, December gold futures prices closed near mid-range Tuesday and hit a six-week high. Gold bears still have the overall near-term technical advantage. However, the bulls are coming on strong. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,280.00. Bears next near-term downside breakout price objective is closing prices below solid technical support at $1,232.00. https://facebook/pslcommodities
Posted on: Thu, 23 Oct 2014 06:18:09 +0000
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