Gold futures were skyrocketing Monday as technical buying increased demand for the precious metal.
May futures were jumping $16 to $903.60 an ounce at the Comex division of the New York Mercantile Exchange. The contract has traded as low as $885.80 and as high as $907.50 so far during the session. Silver futures were also on the rise, up 40 cents to $12.88 an ounce, while copper was adding 4 cents to $2.14 a pound.
Gold moved slightly higher in overnight trading and then jumped almost $10 after U.S. markets opened. Prices were holding above the $890 level, which triggered large technical buying, says Carlos Sanchez, associate director of research for CPM Group. Although prices are bouncing, volume is thinner than usual.
Sanchez believes investors are still rushing to safe haven assets despite positive economic data. "There has been some increased optimism over the last couple of weeks, [but] it looks like this week may point to ... pessimism which is helping gold go higher." Friday's upcoming unemployment number could weigh on recovery hopes and investor sentiment.
July platinum futures were also rising after last week's selloff. Weakness in the auto industry and industrial sector has put pressure on demand for the metal, but "investment buying ... has helped hold up prices", says Sanchez.
In gold stocks, Newmont Mining(NEM Quote) and Barrick Gold(ABX Quote) were rising almost 3% to $39.97 and $30.06, respectively. Shares of Yamana Gold(AUY Quote) were up 3.9% to $8.38.
Agnico-Eagle Mines(AEM Quote) was rising 2.8% to $45.84, and Gold Shares(GLD Quote) exchange trade fund was higher by 2% to $88.79.
