Gold Price Sees Good Gains, Hits 3-Week High, on Safe-Haven and Technical Buying

New York (Jun 9)  Gold prices closed near the daily high and hit a three-week high Thursday. Safe-haven demand and more technically related buying were featured. The gold and silver bulls have near-term momentum on their side, to suggest prices can continue to trend sideways to higher in the near term. August Comex gold was last up $11.60 an ounce at $1,273.90. July Comex silver was last up $0.30 at $17.285 an ounce.

World stock markets were mostly lower Thursday, while European government bond yields touched record lows and U.S. bond yields also fell. The benchmark German 10-year bund was fetching a yield of just 0.035%. The U.K. 10-year gilt saw a record-low yield of 1.222%. U.S. 10-year Treasury note futures prices hit a new contract high today. All of the above, sprinkled in with some investor anxiety regarding the upcoming U.K. vote to exit the European Union and about world central banks’ monetary policies, and safe-haven gold saw good demand today.

The gold and silver markets shrugged off the  key “outside markets” being in a bearish posture for the precious metals today, as the U.S. dollar index was higher on an upside correction from recent selling pressure that drove the index to a four-week low on Wednesday. Nymex crude oil futures prices were weaker on some profit taking after hitting a seven-month high on Wednesday. Nymex crude is still trading above $50.00 a barrel.

China got some downbeat data on price inflation Thursday. Consumer inflation was up 2.0% in May, year-on-year, compared with a 2.3% rise in April. The falling inflation rate has many China watchers reckoning China’s central bank may introduce new economic stimulus measures. Markets in China were closed for a public holiday.

Source: KitcoNews