Gold surges 3 per cent

Gold surged over 3 per cent for its best day in eight months on Thursday as the Federal Reserve’s lack of commitment to raise interest rates and continued tensions in the Middle East unleashed a wave of short covering.

Bullion hit its highest level in more than two months. Silver jumped as much as 5 per cent, while platinum and palladium also climbed as new hurdles emerged to settling South Africa’s mining strike.

“The Fed statement and geopolitical tensions sparked a frantic reversal in market sentiment. Investors are now bullish instead of bearish on gold,” said Phillip Streible, senior commodities broker at Chicago-based RJ O’Brien.

Gold was higher during London hours as the US dollar eased after the Fed signalled on Wednesday it will stick with a near-zero interest rate policy to support the economy, disappointing traders who had bet on hints of policy tightening.

Gains accelerated shortly before midday in New York, after prices pierced above $US1,305 an ounce, triggering heavy stop-loss orders for traders who had previously expected lower bullion prices on hopes of a better US economy.

Lower US 2014 growth forecast by the Fed and lingering geopolitical tensions in Iraq and Ukraine rekindled investors’ interest in gold, traders said.

Spot gold was up 3 per cent at $US1,315.90 an ounce by 3:52 p.m. EDT (1952 GMT), having earlier hit $US1,321.70, a two-month high.

Technical buying also helped lift prices on Thursday as the rally sent gold above tough resistance at $US1,285, near a key Fibonacci retracement as well as its 50- and 100-day moving averages, analysts said.

US COMEX gold futures for August delivery settled up $US41.40 at $US1,314.10 an ounce.

Silver gained 4.1 per cent to $US20.68 an ounce, having earlier hit $US20.91, a three-month high. It notched its biggest one-day gain in four months.

Platinum rose 1.6 per cent to $US1,467.70 an ounce and palladium was up by 1.5 per cent to $US835.05 an ounce. Both were trading near one-week highs as a mining strike in major producer South Africa looked set to drag on.

South African platinum union AMCU has made “unaffordable” new demands beyond a deal struck with producers last week, mining companies said on Wednesday, dashing hopes of an end to the country’s longest and costliest mining strike.


Posted in 老域名. Bookmark the permalink. RSS feed for this post. Both comments and trackbacks are currently closed.

Comments are closed.

Swedish Greys - a WordPress theme from Nordic Themepark.