Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Gold Hits 2-Week High, but Seen Mostly Range-Bound for Now

Published 11/21/2018, 01:30 PM
Updated 11/21/2018, 03:15 PM
© Reuters. - Gold hit two-week highs on Wednesday, demonstrating its comfort at the $1,200 perch.

But a game-changer is needed if the market is to break out of its recent range.

Brexit turmoil, stock market jitters, trade wars and the potential for U.S. sanctions against Saudi Arabia for the murder of journalist Jamal Khashoggi are among factors supporting the yellow metal from falling to the $1,100 level, traders said.

"Gold is still a haven for many, but needs more open interest and more higher closes over the $1235-$1250 level to attract asset allocators," said George Gero, precious metals analyst at RBC Wealth Management in New York.

Walter Pehowich, executive vice president at Dillon Gage Metals in Addison, Texas, concurred.

"For the time being, I expect the price of gold to find its way higher, at a slow and steady pace, as investors convert their stock holdings into other products," Pehowich said. "An accelerated pace can occur if there is any news from the Fed that they might be thinking of pausing their aggressive interest rate posture."

The Federal Reserve is widely expected to raise U.S. interest rates for a fourth time this year at its December meeting.

COMEX gold futures for December delivery settled up $6.80, or 0.5%, at $1,228 per troy ounce. The session high was $1,230.80, a peak since Nov. 6.

The dollar index, a contrarian bet to gold, was down 0.1% at 96.59.

Among other precious metals on COMEX, silver jumped 1.6% to $14.50 per ounce.

Palladium gained 0.6% to $1,132.30 per ounce, while sister metal platinum rose 0.4% to $850.50.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

In base metals, COMEX copper rose 0.9% to $2.79 per pound.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.