Gold Posts Sharp Gains on Safe-Haven Demand, Short Covering: Gold prices ended the U.S. day session solidly higher and closed above the key $1,300.00 level Wednesday. The yellow metal was boosted by safe-haven demand and short covering on renewed geopolitical concerns. December Comex gold was last up $23.70 at $1,307.70 an ounce. Spot gold was last quoted up $20.30 at $1,309.50. December Comex silver last traded up $0.221 at $20.12 an ounce. There is renewed attention on the Russia-Ukraine crisis at mid-week. Reports said Russian president Putin is getting ready to retaliate with its own sanctions against the West after his country has been slapped with economic sanctions recently. There were reports Tuesday afternoon that Russian troops were massing on the Ukraine border. Even though that news was not fresh, it was partly credited with sinking the U.S. stock market Tuesday afternoon. The feature in the market place early Wednesday was the sell-off in world stock markets, following the U.S. lead Tuesday afternoon, as investors and traders exhibited keener “risk-off” attitudes. However, by afternoon trading Wednesday the U.S. stock indexes had pared their early losses. In other news Wednesday, the yield on the German five-year bond (the Bobl) dropped to a record low Wednesday, at 0.28%, down from 0.33% last month. The record-low German bond yield is another clue of the heightened risk aversion presently in the market place. Italy’s GDP was reported down 0.2% in the second quarter from the first, and down 0.3% year-on-year. This means Italy’s economy has slipped back into recession, which is another bearish clue for the collective European Union economy. The London P.M. gold fix was $1,306.50 versus the previous A.M. fixing of $1,288.50. Technically, December gold futures prices closed near the session high Wednesday. Gold bulls and bears are now back on a level near-term technical playing field. A four-week-old downtrend line on the daily bar chart was negated Wednesday. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,327.00. Bears next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,281.00. First resistance is seen at Wednesday’s high of $1,311.00 and then at $1,315.00. https://facebook/pslcommodities
Posted on: Thu, 07 Aug 2014 04:28:03 +0000
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