Breaking News

Gold On a Roll Above $1,300 as Fed Stays

CommoditiesJan 30, 2019 02:42PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. - Many market pundits think gold will come off its highs soon and see lackluster moves till the year end. For now, the yellow metal's momentum at the top is telling a different story.

For a fourth day in a row, benchmark February gold futures on New York Mercantile Exchange's Comex division hit highs above the key $1,300-an-ounce level.

The last two session have been particularly remarkable for February gold as it made highs on days when even the dollar, a contrarian trade to gold, rose. On Wednesday, Wall Street stocks, which often pushes gold in the opposite direction, were higher too after a string of strong corporate earnings.

February futures aside, Comex's most-active gold contract for April settled up $3 at $1,315.50 an ounce on Wednesday, after making a session peak at $1,320.80. The rally came ahead of the monthly meeting of the Federal Reserve which kept interest rates unchanged as widely expected.

The spot gold contract, reflective of trades in physical bullion, was by $7.45, or 0.6%, at $1,319.11 by 1:58 PM ET (18:38 GMT), after making an eight-month high at $1,319.91.

Gold futures' gain on the year itself is a modest 2.2%. But almost all of that gain has come from the past four sessions, indicating that the yellow metal may have found the legs to a rally. Gold has struggled since last summer in part because of four Fed rate hikes in the last year.

Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas, said a number of geopolitical and economic tensions -- from protracted Brexit negotiations in Europe to Venezuela's leadership crisis in South America and inconclusive U.S.-Sino trade talks in Washington -- were keeping gold's uptrend intact.

"Gold ETF (NYSE:GLD) inflows are also increasing, as more and more investors jump in, continuing to diversify their portfolios," Pehowich said.

Many market pundits, however, think that gold will lose its fizzle and be trapped in a range of around $1,300.

A Reuters survey of 36 analysts and traders published on Tuesday showed the median forecast for gold in 2019 only averaging $1,305 -- up just 3% from the 2018 average.

The poll concluded that only in the coming year onward, a price breakout could be expected, with a high of $1,350 forecast for 2020. Even then, that will be below peaks of $1,374.91 seen in 2016 and $1,366.07 hit last year.

Separately, Standard Chartered (LON:STAN) precious metals analyst Suki Cooper told CNBC that she expected gold to average $1,325 by the fourth quarter and attempt to breach $1,400 in 2020. Gold has not hit $1,400 since September 2013.

The spot price of palladium traded at $1,358.55 per ounce, up $15.30, or 1.1%, by 2:33 PM ET (19:33 GMT).

Spot palladium has traded above gold since hitting record highs of $1,440.35 on Jan. 17, making it the world's most valuable traded metal. Gold's all-time peak is, however, even higher in the $1,900 level.

The most-activepalladium futures contract on Comex rose by $16.25, or 1.3%, to $1,319.85 per ounce.

In other precious metals on Comex, silver futures gained 22 cents, or 1.4%, to $16.06 per ounce.

Platinum futures rose by $7.60, or 0.9%, to $823.40 per ounce.

In base metals,copper rose 5.4 cents, or 2%, to $2.78 per lb.

Gold On a Roll Above $1,300 as Fed Stays

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email