Gold Up, Hits 6-Week High, on Near-Term Technical Strength

By Anil Mathews (ScrapMonster Author)

October 13, 2015 06:56:56 AM

(Kitco News) - Gold prices ended a subdued U.S. trading session moderately up and hit another six-week high Monday. Chart-based buying was again featured in gold today, as prices are in a near-term uptrend. December Comex gold was last up $6.60 at $1,162.40 an ounce. December Comex silver was last up $0.042 at $15.86 an ounce.

World markets were quieter and uneventful Monday. Japan’s markets were closed for a holiday. The Columbus Day holiday Monday kept most U.S. markets squelched as the U.S. government was closed and no U.S. economic data was released.

Discussion in the marketplace remains on U.S. Federal Reserve monetary policy and just when the Fed might raise U.S. interest rates for the first time in several years. Recent weaker U.S. economic data (namely the employment reports of the past two months) have led many market watchers to believe the Fed won’t raise interest rates this year. This growing notion has been bullish for stocks, most raw commodity markets and U.S. Treasuries, but has been bearish for the U.S. dollar.

The outside markets on Monday saw the U.S. dollar index slightly lower and at a three-week low. The greenback bears still have technical momentum as prices have been trending lower for two weeks. Crude oil prices traded sharply lower Monday on a corrective pullback after hitting a 2.5-month high of $50.92 a barrel Friday. The Russian military action in Syria had helped to give the geopolitically sensitive oil markets a boost recently.

Courtesy: Kitco News