Gold Ends Higher On Safe-Haven Demand, Technical Buying, Downbeat U.S. Data
- Gold rose for a second straight session on Tuesday as global economic concerns spurred safe-haven demand and assets in the top bullion fund reached the highest since 2014.
* Spot gold XAU= gained 0.2 percent to $1,240.40 an ounce by 0045 GMT, after rising 1.3 percent in the previous session.
The metal, which logged its best month in four years in February with a 10.8 percent gain, has been one of the best performing assets this year amid a turmoil in the wider markets.
Global economic concerns have prompted investors to channel money into gold.
Assets of SPDR Gold Trust (GLD), the world's largest gold-backed exchange-traded fund, rose 1.95 percent to 777.27 tonnes on Monday, the highest since September 2014.
- Gold has risen 1%, boosted by lower equities and weak us data, leaving the metal well placed to log its best monthly performance in 4 years as turmoil in wider markets increases its safe-haven appeal.
- Gold prices ended the U.S. day session moderately higher Monday, on some mild safe-haven demand and chart-based buying. The yellow metal had the best upside monthly performance in about four years. Prices are up around 15% so far this year. April Comex gold was last up $14.10 at $1,234.50 an ounce. May Comex silver was last up $0.206 at $14.92 an ounce.
Technically, April gold futures prices closed nearer the session high today. Prices are in a 2.5-month-old uptrend on the daily bar chart and bulls have the firm overall near-term technical advantage. A bullish symmetrical triangle pattern is also in place on the daily bar chart. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at the February high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,200.00. First resistance is seen at today’s high of $1,236.80 and then at $1,244.40. First support is seen at $1,225.00 and then at today’s low of $1,216.30. Wyckoff’s Market Rating: 7.0
Reference: Kitco, Reuters, Business News
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