Gold price powers to 10-week high on bullish technicals, weaker greenback

New York (May 6)  The gold market pushed above what was key technical resistance at the $1,800.00 level Thursday morning and hit a 10-week high. Silver prices notched a nine-week high. The move above $1,800.00 in gold set off pre-placed buy stop orders in the futures market to propel prices even higher. The metals are boosted by more bullish charts this week, a drop in the U.S. dollar index on this day and bond yields that have pulled back from this week’s highs. It could also be that increasing worries about global inflation becoming problematic in the coming months are prompting the buying of gold and silver as a hedge against serious inflationary pressures that could occur down the road. There are certainly several clues recently that do suggest such being the case. June gold was last up $29.50 at $1,813.50.

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