Gold Up, Hits 3.5-Month High, as Near-Term Technicals are Bullish

By Paul Ploumis (ScrapMonster Author)
October 16, 2015 04:15:22 AM
Gold ended US day session Thursday with marginal gains, hitting new 3.5 high.Gold Up, Hits 3.5-Month High, as Near-Term Technicals are Bullish
(Kitco News) - Gold prices ended the U.S. day session moderately higher and hit a 3.5-month high Thursday, on follow-through buying strength after Wednesday’s solid gains. Prices are now closing in on $1,200.00 an ounce. Bullish near-term technical momentum continues to build for the yellow metal, and to a lesser extent for silver, whose prices are hovering at a nearly four-month high. December Comex gold was last up $7.30 at $1,187.10 an ounce. December Comex silver was last up $0.038 at $16.15 an ounce.

Gold prices lost some early gains following a decline in U.S. jobless claims, reported Thursday morning, that are now at a 40-year low. The upbeat jobless claims report fell into the camp of the U.S. monetary policy hawks that want to see the Federal Reserve raise interest rates sooner rather than later. The jobless claims report also sent the U.S. dollar index to solidly higher price levels on the day, which in turn helped to pressure the gold market. However, gold prices did rebound a bit as the session progressed.

A feature in the marketplace this week has been the recent strong rally in gold prices. Gold is one of the commodity markets showing bullish “green shoots” that are indicating the raw commodity sector could be coming out of its bust cycle.

The market place was uneventful overnight amid no major economic news coming out of Asia or Europe, and no geopolitical flare-ups.

Courtesy: Kitco News