By Paul Ploumis 21 Aug 2015 Last updated at 08:26:38 GMT
Gold gained significantly on US day session Thursday. Meantime, world stock markets witnessed turmoil.
(Kitco News) - Gold ended the U.S. day session sharply up and scored a five-week high Thursday, on strong safe-haven demand for the yellow metal. The world market place was very uneasy on this day. Pre-placed buy stop orders were also triggered in gold futures, to help drive prices even higher. December Comex gold was last up $24.50 at $1,152.40 an ounce. September Comex silver was last up $0.326 at $15.505 an ounce.
World stock markets and secondary currency markets were under selling pressure Thursday, partly due to the uncertainty surrounding Wednesday afternoon’s FOMC minutes, ongoing China economic and financial worries, and as October Nymex crude oil futures prices fell to another 6.5-year low of $40.50 a barrel overnight. Brent crude oil futures are trading around $46.00 at present. The emerging market currencies turmoil Thursday reminded veteran traders of the currency volatility in the late 1990s that began with smaller currencies becoming unstable. And while presently not near the front burner of the market place, traders and investors are taking notice of Brazil’s economic and political troubles. Brazil is the world’s seventh-largest economy. Remember, too, that the upcoming months of September and October have been known to be unfriendly to the stock market through the years.
All of the above worked in the favor of gold market bulls. The near-term chart posture for gold is also becoming more bullish.
Traders and investors were still digesting Wednesday afternoon’s FOMC minutes from last month’s meeting of Federal Reserve monetary policy officials. Ideas are mixed on whether the minutes leaned to the hawkish or dovish side and there is still some debate on that matter. However, judging by the reaction of the U.S. dollar index, which sold off after their release, the minutes were tilted toward the camp of the monetary policy doves. The minutes also indicated FOMC members’ worries about China’s economic health.
The London P.M. gold fix is $1,147.70 versus the previous A.M. fix of $1,137.95.
Courtesy: Kitco News
