Gold Ends Firmer, Hits 4-Week High, on Safe-Haven Demand and Technical Buying

Published: Mar 27, 2015 15:47

Save

Gold prices ended the U.S. day session higher, hit a four-week high and pushed above what was psychological resistance at the $1,200.00 level Thursday.

Author: Paul Ploumis27 Mar 2015 Last updated at 04:05:01 GMT

(Kitco News) - Gold prices ended the U.S. day session higher, hit a four-week high and pushed above what was psychological resistance at the $1,200.00 level Thursday. Safe-haven demand amid a flare-up in the Middle East and chart-based buying fueled the gold market bulls on this day. A rebound in the U.S. dollar index and the U.S. stock market during the U.S. trading session Thursday did help to pare stronger early gains seen in gold. April Comex gold was last up $7.30 at $1,204.40 an ounce. May Comex silver was last up $0.105 at $17.105 an ounce.

Saudi Arabia and its allies’ air strikes against Iran-backed rebels in Yemen have produced fresh geopolitical tension. Saudi Arabia and Iran, the two major Middle East powers, are now in a stare-down. The military action in Yemen was not expected. Crude oil prices rallied sharply to a two-week high above $52.00 a barrel on the news, while safe-haven gold also posted decent gains.

While the U.S. stock indexes posted corrective bounces Thursday after strong selling pressure the past couple days, there are now early technical clues the indexes have put in at least near-term market tops. If that’s the case, it would be a bullish development for the competing asset class, precious metals.

Reports overnight said China has moved to allow more companies to import gold into China, which will effectively reduce the premium China’s domestic gold-buyers have had to pay over the world price. The move by Chinese authorities should give a modest boost to gold demand coming from China. The World Gold Council said Chinese demand for imported gold is likely to rise by 11% this year.

The other key “outside market” on Thursday saw the U.S. dollar index lower early on, but then post a corrective bounce from recent strong selling pressure. The dollar index bulls had faded badly the past week and there are early technical clues of a market top in the index.

The London P.M. gold fixing is $1,203.15 versus the previous A.M. fixing of $1,209.40.

Courtesy: Kitco News

gold price gold prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

5 hours ago

Foshan Huahong Copper Pipe & Tube, Leading Guangdong Manufacturer, Announces Closure

On August 21, Foshan Huahong Copper Pipe & Tube Co., Ltd., located in Shishan Town, Nanhai District, Foshan City, announced the cessation of its operations. The company was established in 2004 with a registered capital of 150 million RMB, and was once a leading enterprise in the Foshan refrigeration copper pipe & tube industry. It was also listed among the top 500 manufacturing enterprises in Guangdong Province and was recognized as a provincial high-tech enterprise.

5 hours ago

SHFE Lead Breaks Through Bollinger Upper Track, Pulls Back Under Pressure and Stays High Consolidating on a Strong Note [Brief Review of Lead Futures]

5 hours ago

6 hours ago

Jinhui Mining Subsidiary Secures Mining License, Boosting Production to 2.44M mt/year

On August 24, Jinhui Mining Co., Ltd. announced that its subsidiary had obtained a mining license and real estate ownership certificate and completed the change of its exploration right. Following the acquisition of the mining right, the company's production capacity will increase from 1.78 million mt/year to 2.44 million mt/year. The move is expected to further expand its lead-zinc resource reserves, strengthen resource security, consolidate its core lead-zinc business, and enhance its sustainable operating capabilities and core competitiveness, in line with the company's long-term development strategy.

6 hours ago