Gold futures on the COMEX Division of the New York Merc Monday extended its rally beyond the Key psych mark of 1,400 oz, settling at all-time high 1403.2 on Bullish sentiment, Silver gained 68.4c.
The most active Gold contract for Dec delivery rose 5.5, or 0.4%, to close pit trade at a record high settlement of 1,403.2 oz.
The news that USD strengthened 0.5% Monday did not dampened the Gold market sentiment. Gold will continue to be bought I beleive because no one believes the USD can stage a meaningful rally in here.
The “Greenback” dropped to the lowest level since December against a basket of major currencies after the Fed detailed its plans last Wednesday to buy US$600B + worth of Treasuries Thursday.
Gold may also garnered support from market hearsay that China was set to buy more commodities than US Treasury debt.
Plus, a gloomy economic prospect in the EuroZone also gave a push to Gold’s rally. Ireland is seeking support from the European Union this week to avoid a Greek-style rescue as investors shunned buying the country’s bonds. The cost of insuring Irish debt against default ballooned Monday and the cost of insuring Portuguese debt also widened to a record.
I believe that the Gold market was likely boosted by comments overnight from the World bank President Robert Zoellick, suggesting leading economies consider readopting a modified Global Gold standard to guide currency movements, although I believe that is not realistic. But, as long as players feel like there is no other recourse except buying precious metals, Gold will keep rising.
December Silver rose 68.4c, or 2.56%, to 26.043 oz. and January Platinum increased 2.2, or 0.12%, to 1,771.1 oz.
Crude Oil prices continued rising Monday despite concerns on European debt which pushed USD higher.
Crude Oil prices were helped by the US job data issued last week. The Labor Department said Friday that employers added 151,000 jobs in October, the 1st net gain in 5 months.
The jobs report could signal more improvement in the economy, which could lead to stronger demand from consumers and businesses for fuel.
Monday, the “Greenback” rose against the euro on renewed concerns on the European’s debt problem. Light, Sweet Crude for Dec delivery rose 21c to 87.06 bbl on the New York Merc. Stay tuned…Paul A. Ebeling, Jnr. www.livetradingnews.com
