Gold firm above $1,200 as lower equities stoke safe-haven bids
- Gold ripped higher overnight, after a few days of consolidation around $1200. The day lows around 1202, but from that moment on it was one way traffic all the way up to 1240.
- Gold steadied near $1,230 an ounce on Friday, largely holding sharp overnight gains as a drop in U.S. equities stoked fresh safe-haven demand for the metal.
For the week, gold is down 0.7 percent, snapping a four-week winning streak as the metal gave back some gains after climbing to a one-year high last week.
On Thursday, U.S. equities snapped a three-day rally, while European equities fell back in a choppy session after climbing to a two-week high earlier in the session.
Assets in SPDR Gold Trust, the world's top gold ETF, rose 0.38 percent to 713.63 tonnes on Thursday.
Economists polled by Reuters now see just two rate hikes this year. Traders are betting even odds at best of a single rate hike.
San Francisco Fed President John Williams said on Thursday that U.S. central bank should stick with its plan to raise interest rates gradually.
- Technically, April gold futures prices closed nearer the session high. Bulls gained fresh upside technical momentum today. Prices are in a two-month-old uptrend on the daily bar chart and bulls have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,263.90. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at this week’s low of 1,191.50. First resistance is seen at today’s high of $1,228.80 and then at this week’s high of $1,236.30. First support is seen at $1,214.40 and then at $1,210.00. Wyckoff’s Market Rating: 6.5
Reference: MKS Group, Reuters, Kitco
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