Gold Up on Short Covering, Bargain Hunting, and Even Some Safe-Haven Buying

10 Jun 2015 Last updated at 05:37:30 GMT

 

(Kitco News) - Gold prices ended the U.S. day session moderately higher Tuesday, on some more short covering in the futures market and bargain hunting in the cash. The key “outside markets” also were in a bullish posture for the precious metals on this day, as the U.S. dollar index was weaker and crude oil prices were solidly higher. August Comex gold was last up $3.80 at $1,177.40 an ounce. July Comex silver was last up $0.001 at $15.96 an ounce.

 

The gold market could also be receiving some safe-haven buying interest as world stock markets are wobbly at present, including U.S. stock indexes that have backed down from their recent highs.

 

The market place is awaiting fresh fundamental news, which may not arrive until next week’s FOMC meeting of the U.S. Federal Reserve. Trading action in many markets so far this week is similar to the summertime doldrums that occur during late summer.

 

In overnight news, China’s consumer price inflation for May came in at up 1.2% in May, year-on-year, versus up 1.5% in April. However, producer prices fell 4.6% in May, year-on-year. This data has deflationary tones and will put more pressure on China’s central bank to stimulate its monetary policy. Asian stock markets were pressured on this news.

 

In the European Union, the bloc’s gross domestic product rose just 0.4% in the first quarter versus the last quarter of 2014. The report was deemed downbeat and European stock markets saw selling on the news.

 

The London P.M. fix is $1,177.40 versus the previous A.M. fixing of $1,181.00.

 

Courtesy: Kitco News