Gold holds near seven-and-a-half-year month peak as equities tumble
- Gold stayed near its highest since June at close to $1,200 an ounce on Tuesday, buoyed by uncertainty over global growth that has kept stock markets under immense selling pressure.
As fear overwhelmed greed, yields on longer-term U.S. Treasury debt hit one-year lows as bond prices rose, the yen surged to a 15-month peak and gold reached its most precious since June.
Economic uncertainty, a weak dollar and falling expectations for U.S. interest rate hikes have spurred the biggest buying spree of gold exchange-traded-funds in nearly five years
An increasingly important gauge of U.S. inflation tumbled last month to its lowest level since the New York Fed began the survey in mid-2013, in what could be taken as another warning bell for the U.S. central bank.
- Gold has advanced 12 percent this year on rising concern that the global economy is losing steam, with global equity markets in retreat and investors cutting bets on higher U.S. interest rates. Shares in Asia fell on Tuesday following a drop in U.S. equities that pushed the Standard & Poor’s 500 Index to a 22-month closing low.
- Gold prices ended the U.S. day session sharply higher, hit an eight-month high and came within a whisker of touching $1,200.00 on Monday. Strong safe-haven demand was featured as world stock markets are again under selling pressure to start the trading week. Chart-based buying interest is also prevalent as gold prices are presently in a near-term uptrend. And the weakening U.S. dollar index recently is also working in favor of the precious metals market bulls. April Comex gold was last up $39.40 at $1,197.00 an ounce. March Comex silver was last up $0.617 at $15.415 an ounce.
Technically, April gold futures prices hit an eight-month high today and closed nearer the session high. Prices are in an accelerating seven-week-old uptrend and the bulls have technical momentum and the firm near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,200. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,150.00. First resistance is seen at $1,200.00 and then at $1,210.00. First support is seen at $1,190.00 and then at $1,180.00. Wyckoff’s Market Rating: 7.0
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