Gold Gains on Save-Haven Demand, Bullish Outside Markets

Author: Paul Ploumis13 May 2015 Last updated at 05:42:36 GMT

(Kitco News) - Gold prices ended the U.S. day session moderately higher Tuesday, boosted on short covering, bargain hunting and even some safe-haven demand. A lower U.S. dollar index and higher crude oil prices on this day worked in favor of the precious metals bulls. June Comex gold was last up $9.10 at $1,192.10 an ounce. July Comex silver was last up $0.231 at $16.545 an ounce.

A feature in the world market place recently, and which has become more pronounced this week, has been many bond markets worldwide selling off sharply, including U.S. Treasuries. European and Japanese bond markets are under selling pressure. The bond market sell-off has spilled over into weakness in world stock markets. The world bond market jitters are providing some increased demand for safe-haven gold. Rising bond yields also hint of price inflation, which is also bullish for hard assets like the metals.

The Euro currency was solidly higher and the U.S. dollar index is lower Tuesday morning, partly on news Greece was able to make a 750 million Euro payment to the International Monetary Fund, which was due today. There was some worry among European traders that Greece would not be able to coming up with the funding. However, Greece and the European Union/IMF are still in hard negotiations on Greece’s debt restructuring.

The London P.M. fix is $1,191.50 versus the previous A.M. fixing of $1,184.45.

Courtesy: Kitco News