Gold Hits 4-Week High on Heavy Short Covering and Some Safe-Haven Demand

By  Paul Ploumis 25 Sep 2015  Last updated at  05:29:14 GMT

(Kitco News) - Gold prices popped to a four-week high of $1,156.40 in December Comex futures Thursday. The yellow metal saw a combination of strong short covering in the futures market, bargain hunting in the cash market, and some fresh safe-haven demand amid sharp losses in the U.S. stock market. Buy stop orders were triggered when December gold pushed above what were solid chart resistance levels at last week's high of $1,141.50 and then at the September high of $1,147.30. The next upside objective for the energized gold market bulls is the August high of $1,169.80. December Comex gold was last up $22.00 at $1,153.50 an ounce. December Comex silver was last up $0.0341 at $15.13 an ounce.

While the U.S. stock indexes were solidly lower Thursday, due in part to some downbeat U.S. economic data released in the morning, world stock markets were mixed on the day. Japan’s Nikkei stock index down nearly 3% as Japan markets reopened from a long holiday. China’s Shanghai index was up just over 1%. Traders and investors worldwide and taking their cues from either China or the U.S. In China, the world’s second-largest economy is wavering and that has many markets edgy. And in the U.S., the focus is still on Fed policy—so “Fed speak” will continue to be extra important.

Speaking of which, Fed Chair Yellen’s lecture to a Philip Gamble Memorial group in the afternoon will find traders hoping she will shed some fresh light on just when the U.S. central bank might raise its interest rate for the first time in several years.

The London P.M. gold fix today was $1,154.50 versus the previous London A.M. fixing of $1,134.45.

Courtesy: Kitco News