US Gold prices finished pit trade higher, tapping a hit a 7-month high Thursday.
Prices are in clear sight of the Y 2012 high just above 1,800.00. The market was supported by full Bullish outside markets that saw a sharply lower USD index and sharply higher Crude Oil prices.
There was also new fresh safe-haven demand in the Gold market Thursday, as tensions in the Middle East heat up again.
Dec Gold last traded + 12.10 at 1,791.90 oz.
Spot Gold was last quoted + 13.60 at 1,793.40 oz.
Dec Comex Silver last traded + 0.275 at 34.965 oz.
At Thursday’s monthly European Central Bank press conference, ECB president Mario Draghi reiterated the ECB is prepared to soak up the excess debt following treasury auctions of stressed European Union countries. He also pledged full ECB support for the Euro currency.
Mr. Draghi’s comments boosted the Euro currency, which in turn supported Gold prices Thursday. At the monthly ECB meeting, the central bank kept its interest rates unchanged.
In other news: Thursday, the Bank of England left its interest rates unchanged, as expected. China is on Holiday this week, celebrating Golden Week.
On the geo-political front: new violence in Syria this week and rising tensions between Iran and Turkey pushed the market place a just a bit more toward risk aversion Thursday.
Reports said Iranian and Turkish troops were mobilizing near their shared border. There was also protesting in Iran this week due to the severe devaluation of the Iranian currency recently. These developments caused some new safe-haven investment demand in Gold.
The release Thursday afternoon of the FOMC minutes from the last Fed meeting contained no major surprises and did not significantly impact the market place. Now, Friday’s important US jobs report is the focus of traders. The Key non-farm payrolls component of the jobs report is seen rising by 118,000 in September.
The USD index was sharply lower Thursday, partly on the ECB’s Draghi comments. The Greenback Bears have the overall near-term technical advantage and gained new Southside momentum today.
Nymex Crude Oil prices were sharply higher Thursday erasing most of Wednesday’s losses. Heavy
Short covering and bargain hunting were featured in Crude Oil trade.
WTI Crude Oil 91.55 +3.41 (+3.87%)
Crude Oil Bulls and Bears are back on a level near-term technical ground. These 2 Key outside markets continue to have daily influence on Gold and Silver prices.
The London PM Gold fixing is 1,791.75 vs the prior PM fixing at 1,775.25.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.
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