Gold Hits 6-Wk High, On Safe-Haven Buying, Bullish Charts
(Kitco News) - Gold prices were ending the U.S. day session modestly higher and hit a six-week high Monday. Geopolitical developments in the Middle East and an increasingly bullish near-term technical posture are prompting trader and investor buying interest. Gold prices are now within striking distance of the key $1,300.00 mark. August Comex gold was last up $1.70 an ounce at $1,281.90. July Comex silver was last up $0.03 at $17.555 an ounce.
There are some new geopolitical tensions in the Middle East that are prompting a bit of risk aversion that is supporting the safe-haven gold market. Saudi Arabia and a few other Middle East nations have cut ties with Qatar after accusing that small country of promoting terrorism. While not a big deal, this situation reminds the marketplace of the high potential for conflict in the Middle East in the coming months and years.
Another terror attack that killed seven people in London last Saturday had little impact on the world markets Monday. Unfortunately, these acts have become a fact of life in recent years and markets tend to quickly look past them.
Nymex crude oil futures prices were slightly lower Monday. The oil market bears have the firm overall near-term technical advantage. The bearish technical posture for crude oil is a bearish element that will limit the upside in many raw commodity markets, including the precious metals, if oil continues to trend sideways to lower.
The other “outside market” on Monday saw the U.S. dollar index slightly firmer on a short-covering bounce after hitting a six-month low late last week. The greenback bears are also in firm near-term technical control as dollar index prices are in a three-month-old downtrend.