Gold Price Hits 7 Month High

By Roger Baettig | September 28 2012 4:08 AM

Gold finishes on 7 month high

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Gold futures on the COMEX division of the New York Merc rallied to a 7 month high Thursday, charging back from 2 wk lows as weaker prices enticed bargain hunters.

The most active Gold contract for Dec delivery rose 26.9, or 1.53%, to settle at 1,780.5 oz.

Silver for Dec delivery rose 0.72.6, or 2.14%, to finish at 34.666 oz.

Nervousness about the eurozone has kept Gold prices well supported in recent sessions, and the price decline on the previous day prompted purchases by some traders.

On Wednesday, Gold fell 12.8 to 1,753.6 oz, a 2 wk low.

Gold advanced more than 5% so far this month.

Concerns about the health of the global economies, fears of currency debasement and inflation following stimulus measures from central banks around the world are driving Gold prices higher.

The ICE USD Index, which measures USD against a basket of 6 other currencies, fell to 79.509 from 79.920 in late Wednesday trading in North America.

A weaker USD provided support for Gold and other USD-denominated commodities, as it makes them cheaper for holders of other currencies, broadening their investment appeal.

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.