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Gold Ends Slightly Up on Short Covering, Weaker USDX
May 29,2015 19:12CST
industry news
Source:SMM
Gold prices ended the U.S. day session with slight gains Thursday. Short covering in the futures market.

Author: Paul Ploumis29 May 2015 Last updated at 04:02:16 GMT

(Kitco News) - Gold prices ended the U.S. day session with slight gains Thursday. Short covering in the futures market and some bargain hunting in the cash market were featured. As has been the case for some time now, precious metals traders are keeping one eye on the U.S. dollar index, which traded on both sides of unchanged Thursday but was lower in afternoon action. Gold and silver traders are in need of some new fundamental developments to drive price action. Friday morning’s first-quarter U.S. gross domestic product report could provide a spark. August Comex gold was last up $2.50 at $1,189.00 an ounce. July Comex silver was last up $0.023 at $16.67 an ounce.

The U.S. dollar index treaded water Thursday morning after poking to a four-week high Wednesday. The index then weakened in late-morning dealings, which was mostly a profit-taking pullback from recent gains. In Asian trading overnight the greenback hit a 12-year high against the Japanese yen. Asian stock markets sold off sharply, partly due to the strong U.S. dollar. If the Asian stock markets continue their sell offs Friday, such could prompt some safe-haven demand for gold.

Recent U.S. economic data has led many market watchers to believe the Federal Reserve will raise interest rates this year. That’s been U.S. dollar-bullish and comes when other major central banks of the world remain in monetary policy easing modes. San Francisco Fed President John Williams said on Thursday in Singapore the Fed will likely start to raise rates sometime this year. He added that the slow pace of U.S. economic growth in the first quarter of this year was an anomaly.

Greece and its debt repayment problems are back near the front burner of the market place this week. Reports overnight said a Greece government spokesman said a deal will be reached between Greece and its EU/IMF creditors by Sunday. This news has given a slight lift to the Euro currency Thursday. However, a German EU official on Thursday said little progress is being made in the debt talks, adding that the Greeks always put a positive spin on the matter. The European Central Bank Thursday said a deal needs to be reached quickly in order to assuage jittery European financial markets. Greece and its lenders are meeting in Brussels to hammer out a deal. The Group of Seven industrial nations will meet in Germany, beginning Thursday, to likely discuss the Greece matter, as well as other world economic and financial issues. The Greece debt situation could also become a bullish element for safe-haven gold, if it further deteriorates.

Reports overnight said hedge funds are showing more interest in adding gold and silver to their portfolios, and especially silver. A Bank of America Merrill Lynch report said hedge funds are snapping up silver at the fastest rate in 18 years.

The London P.M. fix is $1,185.00 versus the previous A.M. fixing of $1,189.45.

Courtesy: Kitco News
 

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