Gold prices ended the U.S. day session solidly higher and hit a three-week high Tuesday. Gold and the other precious metals prices have been supported recently by a slumping U.S. dollar index. The near-term technical postures for the precious metals markets are also fully bullish, which is inviting fresh chart-based buying interest. December Comex gold was last up $12.90 an ounce at $1,372.50. September Comex silver was last up $0.19 at $20.69 an ounce.
Weakness in the U.S. dollar is pushing the markets around today, and gold is especially benefiting. In mid-afternoon trade, gold is up around $12.00 of which almost $10.00 is due to the sagging dollar.
The euro hit a five-week high against the greenback. The yen, which a year ago was trading at 125 per dollar is in the 100–101 range on the day. The British pound continues to surprise (recently), as the old-school currency gets up off its back after the Brexit knock down.
Gold futures rose for a sixth straight day as the yen hit a three-week high after Japanese government’s fiscal plans underwhelmed investors.
CME Group reports that metals-trading volume jumped 32% year-on-year in July to a daily average of 503,000contracts, compared to 381,000 in July of 2015. This comes after June metals volume rose by 45% year-on-year to483,000 contracts.
Reference: ฺBloomberg, Kitco
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