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Gold Prices “Chewing” Through All Levels Breaking Above $1,300 – iiTrader

Thursday June 19, 2014 1:46 PM

Nothing appears to be stopping gold as it continues as short covering helps propel the yellow metal through $1,300 an ounce, says Bill Baruch senior market strategist at iiTrader.com. The rally, which started early Thursday pushed gold through its 50-day 100-day and 200-day moving averages and drove prices above the key psychological barrier of $1,300 an ounce. As of 1:37 p.m. EDT Comex August gold was trading at $1,313.10 an ounce, up $40.40 or 3.17% on the day.  “Once gold prices chewed through those levels we investors scramble to cover their short positions,” he says. “Investors and traders expected more certainty from (Fed Chair) Janet Yellen and they were disappointed, which helped gold.” He adds that disappointment is also driving investors out of the U.S. dollar, which failed to move above 81.0. Baruch says that not only will gold have to close above $1,300 an ounce to signal a shift in momentum but the U.S. dollar will have to close below 80.40, which would signal further weakness in the greenback.

By Neils Christensen of Kitco News; nchristensen@kitco.com


Gold Prices Rising Into Technical Chart Resistance

Thursday June 19, 2014 8:47 AM

Gold prices are firmer in the early North American trading session, but are coming into technical chart resistance, says Steve Scacalossi, director, head of sales, global metals, TD Securities. He notes gold took out resistance at the 50-day moving average of $1,283.75 an ounce and the 200-day moving average of $1,285.85, but other layers of resistance are ahead. James Steel, analyst at HSBC, says there is near-term technical chart resistance at $1,290 and Scacalossi says the 100-day moving average is at $1,299.15. Steel also points out that a lack of physical flows could leave gold at risk for a decline. “Indian import demand appears weak as merchants may be waiting for the new government’s first budget, which is scheduled to be released in July,” he says. At 8:36 a.m. EDT, August Comex gold is up $15 at $1,287.70.

By Debbie Carlson of Kitco News; dcarlson@kitco.com


Comments By Fed’s Yellen Lend Support To Gold

Thursday June 19, 2014 8:47 AM

Gold prices are firmer in early North American dealings as the market digests comments Wednesday from Federal Reserve Chair Janet Yellen, which reinforce a dovish Fed. “The central bank played down recent higher inflation as ‘noise,’ while also suggesting that stock valuation was not outside historical norms…. Overall it was a market-friendly outcome, especially as a higher-than-expected CPI (consumer price index) release earlier in the week prompted talks of a more hawkish tone by the Fed,” says Alexander Thorndike, senior precious metals and foreign exchange dealer, MKS (Switzerland) SA. Steve Scacalossi, director, head of sales, global metals, TD Securities, says the “steady as she goes” view from the Fed supports gold. “This is not because anything has changed at the Fed - it is because the market was positioned for a change. In gold and silver this meant the market was short and has been covering shorts,” he says.

By Debbie Carlson of Kitco News; dcarlson@kitco.com


Weaker US Dollar, Firmer Crude Oil Support Gold – INTL FCStone

Thursday June 19, 2014 8:47 AM

A weaker U.S. dollar and firmer crude oil prices are underpinning gold, too, says Edward Meir, commodities consultant at INTL FCStone. In addition to a more dovish Fed, Meir says continued news out of Iraq also underpins gold. “We suspect that gold should enjoy a degree of underlying sup­port from geopolitical headlines, which still remain concerning and have the abil­ity to seriously destabilize the markets, especially if they result in a further spike in oil prices,” he says.

By Debbie Carlson of Kitco News; dcarlson@kitco.com



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