Gold back over $1,300 as equities weaken
Madrid (May 19) Gold prices edged past the $1,300-an-ounce mark on Monday as investors turn to speeches from Federal Reserve officials and the minutes of the latest meeting to come this week after digesting some mixed data on the economic front in recent sessions.
Stock futures pointed to a weaker open for Wall Street, which was also encouraging flows into gold. At last check, gold for June delivery was up $7.20 to $1,300.60 an ounce. July silver jumped 24 cents, or 1.2%, to $19.57 an ounce.
Gold ended last week on a low note, at $1,239.40 an ounce, but the decline wasn’t enough to keep prices from notching a gain for the week amid another flood of mixed economic news.
Alastair McCaig of IG Markets said the conflict in Ukraine has dictated much of gold’s action in recent weeks, but the longer it lasts, the “less reactive” markets become.
“As long as the gold price remains above $1,280 then we will see a fresh test of the top end of the range around $1330,” he wrote. “Only a close above here would open up the possibility of further gains.”
Elsewhere in metals trading, July platinum rose $16.50, or 1.1%, to $1,482.60 an ounce while June palladium rallied $6.10, or 0.8%, to $821.10 an ounce. High-grade-copper for July delivery added 2 cents, or 0.8%, to $3.17 a pound.
