Gold Ends Higher on More Safe-Haven Demand and Short Covering
San Francisco (Aug 7) Gold prices started the day under mild selling pressure Thursday, but more safe-haven demand and short covering kicked in during the session to push prices modestly higher on the day. As the trading day progressed Thursday, investor risk appetite appeared to shrink, to the benefit of gold. December Comex gold was last up $4.10 at $1,310.80 an ounce. Spot gold was last quoted up $4.80 at $1,311.25. December Comex silver last traded down $0.068 at $20.025 an ounce.
Reports Thursday said Russia retaliated against the West’s sanctions by imposing its own: banning imports of many food items from the West. The Russia-Ukraine territorial crisis and the sanctions imposed have caused renewed geopolitical uncertainty this week. There were also reports around midday Thursday that the U.S. could authorize military air strikes in Iraq.
In other news, there was a European Central Bank monetary policy meeting Thursday, including a press conference from ECB president Mario Draghi. The ECB did not make any major policy moves. Draghi’s comments were insignificant to the general market place.
The sell-offs in the U.S. stock indexes recently are the strongest technical evidence yet that the indexes have put in at least near-term market tops. How the stock indexes close on Friday—near their weekly highs or near their weekly lows—will provide more technical evidence on whether that major bull run in the U.S. stock market has finally come to an end.
U.S. economic data released Thursday included the weekly jobless claims report, which was upbeat and did put a bit of downside price pressure on gold in the immediate aftermath of its release.
The London P.M. gold fix was $1,305.25 versus the previous A.M. fixing of $1,302.00.
Technically, December gold futures prices closed nearer the session high Thursday. Gold bulls and bears are on a level near-term technical playing field. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,328.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at last week’s low of $1,281.00. First resistance is seen at Thursday’s high of $1,315.50 and then at $1,320.00. First support is seen at Thursday’s low of $1,303.00 and then at $1,300.00. Wyckoff’s Market Rating: 5.0
December silver futures prices closed nearer the session low Thursday. Silver prices are in a four-week-old downtrend on the daily bar chart. The bears have the near-term technical advantage. Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at $20.70 an ounce.
Source: KitcoNews
