Gold Sharply Up, Hits 6-Week High, Amid Bullish Developments

Author: Paul Ploumis
14 May 2015 Last updated at 04:12:09 GMT
(Kitco News) - Gold prices ended the U.S. day session solidly higher and hit a six-week high Wednesday. A downbeat U.S. retail sales report, a slumping U.S. dollar index and some safe-haven demand all worked in favor of the gold market bulls today. Gold prices pushed well above the $1,200.00 mark, while silver futures surpassed $17.00. Short covering in the futures market and bargain hunting in the cash market were featured in both gold and silver. June Comex gold was last up $24.00 at $1,216.00 an ounce. July Comex silver was last up $0.644 at $17.17 an ounce.

U.S. retail sales for April came in unchanged from March, when a 0.2% rise was expected. The retail sales report is one of the most important U.S. economic data points of the month. The weaker data once again calls into question when the Federal Reserve can begin to raise U.S. interest rates.

The U.S. dollar index slumped on the retail sales news and hit a four-month low. The other key outside market was also in a bullish posture for the precious metals Wednesday as crude oil prices were higher and are hovering near a five-month high.

World bond markets stabilized Wednesday, following the recent rout of many countries’ bonds. The recent world bond market sell-off in prices (rising yields) has spilled over into selling pressure in many major world stock markets. The world bond market jitters have also provided some increased demand for safe-haven gold.

The London P.M. fix is $1,210.50 versus the previous A.M. fixing of $1,193.00.

Courtesy: Kitco News