• Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as continued political uncertainty in the U.S. and Europe gave support to the precious metal.
• The most active gold contract for March delivery rose 3.4 U.S. dollars, or 0.28 percent, to settle at 1,239.50 dollars per ounce.
• Spot gold hit a three-month high of $1,244.67 an ounce before paring gains slightly.
• SPDR Gold holdings up for sixth straight session.
• As there was no major economic reports released on Wednesday, investors are slowly moving to the precious metal as they become increasingly concerned over the potential election of Marine LePen in France, and the uncertainty over policies of U.S. President Donald Trump.
• The marketplace is still a bit apprehensive about any new directives issued from U.S. President Trump. This unconventional U.S. president can rattle cages in a hurry. This has the world marketplace still a bit anxious and uncertain about what the President Donald Trump will do next, and that’s bullish for safe-haven gold.
Recent comments from France presidential candidate and nationalist “National Front” party leader Marine Le Pen, saying that if elected president of France she would back France away from the European Union, have unnerved European traders and investors.
• Analysts note that Marine LePen has stated that she wants to bring France out of the Eurozone, and that President Trump' s travel ban is facing significant opposition in the U.S. courts. Both factors are positive to gold and have left investors worried about the state of the global economy.
• Investors are waiting for the release of several Fed speeches and economic reports later this week. Weekly jobless claims and a speech by St. Louis Fed President James Bullard is due on Thursday and the consumer sentiment report is due on Friday.
• Technically, April gold futures prices closed nearer the session high and hit a nearly three-month high today. The gold bulls have the overall near-term technical advantage and have momentum on their side. Prices are in a six-week-old uptrend on the daily bar chart. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,265.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,210.00. First resistance is seen at today’s high of $1,246.60 and then at $1,250.00. First support is seen at today’s low of $1,231.30 and then at $1,225.00. Wyckoff's Market Rating: 6.0
• Silver for March delivery fell 5.1 cents, or 0.29 percent, to close at 17.705 dollars per ounce.
Reference: Xinhua, Reuters, Kitco
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