Comex Gold Surges on Safe-Haven Buying in Wake of Dour German Economic Data, Weakening U.S. Dollar Index

14 September 2010, 9:59 a.m.
By Jim Wyckoff
Of Kitco News

Comex gold futures are trading solidly higher and have surpassed the previous all-time record high posted in a nearby futures contract in June. December Comex gold last traded up $20.60 an ounce at $1,267.70. Safe-haven buying interest in gold resurfaced Tuesday following a much weaker than expected ZEW manufacturing report coming out of Germany that surprised the European stock and financial markets and has the debt markets in Europe unsettled. The U.S. dollar index has also weakened Tuesday morning, which is adding to investor buying interest in gold. U.S. stock indexes are under modest selling pressure and the U.S. Treasury markets are seeing firmer prices, which does suggest more risk aversion by investors Tuesday. The intra-day record high for any most-active active Comex contract ever is $1,266.50 (which was then the August futures, hit on June 21). The contract high for most-active December Comex gold futures is $1,270.60 an ounce, scored on June 21.

By Jim Wyckoff, contributing to Kitco News;

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