RE:RE:GOLD up 11.50 overnight
Gold Hits 6-Week High on Bullish Outside Markets, Technical Buying
Monday October 12, 2015 08:30
(Kitco News) - Gold prices are higher and hit another six-week high in early U.S. trading Monday. The key “outside markets” have been in a bullish posture for the precious metals markets recently, as the U.S. dollar index is slumping and crude oil prices are rallying. Chart-based buying has also been featured in gold and silver lately, as prices are in near-term uptrends. December Comex gold was last up $10.40 at $1,166.20 an ounce. December Comex silver was last up $0.157 at $15.975 an ounce.
The outside markets on Monday see the U.S. dollar index lower and at a three-week low. The greenback bears have technical momentum as prices have been trending lower for two weeks. Crude oil prices are near steady Monday after hitting a 2.5-month high of $50.92 a barrel Friday. The Russian military action in Syria has helped to give the geopolitically sensitive oil markets a boost.
World markets were quieter and uneventful overnight. Japan’s markets were closed for a holiday. The U.S. Columbus Day holiday Monday will likely see trading and markets remain subdued as the U.S. government is closed and no U.S. economic data is due for release.
Discussion in the marketplace remains on U.S. Federal Reserve monetary policy and just when the Fed might raise U.S. interest rates for the first time in several years. Recent weaker U.S. economic data (namely the employment reports of the past two months) have led many market watchers to believe the Fed won’t raise interest rates this year. This growing notion has been bullish for stocks, most raw commodity markets and U.S. Treasuries, but has been bearish for the U.S. dollar.