Gold Back Above $1,100 On Safe-Haven Demand, Chart-Based Buying

By Paul Ploumis (ScrapMonster Author)

January 26, 2016 04:37:50 AM

(Kitco News) - Gold prices ended the U.S. day session moderately higher and pushed back above $1,100.00 Monday. Some fresh safe-haven demand was featured amid the recent shaky world stock markets. The technical charts are also looking better for the yellow metal. February Comex gold was last up $9.10 at $1,105.20 an ounce. March Comex silver was last up $0.193 at $14.245 an ounce.

European stock markets saw downside pressure to start the new trading week, mainly due crude oil prices once again selling off. Asian stock markets were firmer overnight, following Wall Street’s gains on Friday. U.S. stock indexes were mixed to slightly lower as of this writing Monday afternoon.

The other key “outside market” today saw the U.S. dollar index trading modestly lower, which also worked in favor of the precious metals market bulls on this day.

The Federal Open Market Committee (FOMC) meeting begins Tuesday and ends Wednesday afternoon with a statement. While no change in U.S. interest rates is expected at this meeting, the statement issued after the meeting will be very closely scrutinized. Many market watchers agree the world economies and financial markets have become shakier since the last FOMC meeting in mid-December.

Courtesy: Kitco News