Gold started up in Hong Kong on Thursday, and continued higher to its peak for the day at nearly $835 right at the New York open, then eased in a series of fits and starts straight through the Globex, finishing at $819.70, up $10.10. Overnight, gold has is trending lower.
Platinum also peaked, at $850, at the start of the Comex, but then it too declined, ending at $836, down $2. Overnight, platinum has fallen off.
Silver notched its high for the day at the New York open also, inching past $10.50 before trading listlessly to the downside through the rest of the day and closing at $10.31, up 12 cents. Overnight, silver has dropped lower. (Click here for charts)
It was a bit of a disappointing day for the precious metals on Thursday, as their pre-New York gains were all capped right there, with all further attempts to push higher met with determined selling.
Too bad, as the usual suspects were mostly very supportive. While equities were down, crude soared and the dollar got whacked. Still, gold is up some 10% from last Friday’s close, so there isn’t a whole lot to complain about.
In Britain, the yellow metal is doing even better, with gold trading at a record £552 an ounce, the highest level since records began being kept in 1717.
One of London’s leading bullion dealers had this to say: “We have being selling unprecedented levels of gold, and are doing three times the amount of business in the past month. People are unwilling to put their money in the banks and so where else do they put it? Gold is safe and tangible, something they can hold in their hands during all of this economic turmoil.”
We like the sentiment.
Looking for a reason for gold’s surge Dennis Gartman, editor of the Gartman Letter, floated this one: “If we must account for gold’s rush higher in light of some fundamental news, let’s note the possible creation of debt securities by the Fed … If true and if done, this will be massively inflationary and is music to gold’s ears.”
And Ashraf Laidi, of CMC Markets, added that, “The notion of broadening dollar weakness is explicitly reflected in gold’s rally past the $825 mark … We have long argued that in order for gold to mount a more credible rally beyond $850, downside U.S. risks must be a stand-alone phenomenon, not joined by negative news in Europe and Asia.”
Source: Gold, Silver Push Higher
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