In late U.S. trading Tuesday, gold prices were solidly up and hit a four-week high. The yellow metal is now knocking on the door of $1,300.00.The weaker U.S. dollar index on this day gave the precious metals markets a boost. The near-term chart postures for gold and silver markets are also becoming more bullish, which is inviting new technical buying interest. December Comex gold was last up $18.30 an ounce at $1,291.30. December Comex silver was last up $0.654 at $18.45 an ounce.
The latest polling in the U.S. presidential election also shows a tightening race between Hillary Clinton and Donald Trump. Trump closing the gap as the election is now one week away could also be helping to lift the safe-haven gold market. Most of the world perceives Trump as a bigger unknown should he win the presidency.
There was some upbeat economic data coming out of China, the world’s second-largest economy, Tuesday. China’s official purchasing managers index (PMI) rose to 51.2 in October from 50.4 in September. The October number was higher than market expectations. The better China data was also friendly for precious metals, as China is a major importer of metals.
"The Trump risk seems to be back in the market at least to some extent," Commerzbank analyst Carsten Fritsch said.
A Trump win would likely boost gold due to uncertainty over U.S. economic and foreign policy, HSBC said in a research note. "The market is reacting to the weaker dollar and general financial uncertainty across the board," said James Steel, chief metals analyst for HSBC Securities in New York. "We have some movement out of risk and into bullion," he said.
Reference: Kitco, Reuters
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