Gold racks up record highs on safe-haven bidding, bullish charts
NEW YORK (October 17) Gold prices are higher and have notched new all-time highs in midday U.S. trading Thursday. Spot gold hit a record high of $2,697.90 and December Comex futures a new high at $2,712.70. Safe haven demand amid geopolitical tensions and the uncertainty surrounding the U.S. presidential elections is driving gold prices north. Technical-based buying amid bullish charts is also fueling gains in both gold and silver. December gold was last up $13.30 at $2,704.60 and December silver was down $0.234 at $31.74.
A very heavy slate of U.S. economic data Thursday was highlighted by the retail sales and weekly jobless claims reports. September retail sales came in at up 0.4%, month-on-month and were seen coming in at up 0.3% from August. That compares to a rise of 0.1% in the August report. Weekly jobless claims came in at up 241,000 and were seen up 260,000. That compares to last week’s report showing a rise of 258,000. These two reports fell into the camp of the U.S. monetary policy hawks, who want to see the Fed restrained on its interest-rate-cutting path. However, today’s data is unlikely to change the trajectory of the Fed’s money policy.
The European Central Bank met today and announced a 25 basis-point cut to its main interest rate, taking the deposit facility rate to 3.25%. The move was expected by the marketplace.
In overnight news, broker SP Angel reported Hong Kong officials have plans to develop the region into a gold trading hub. The Hong Kong Chief Executive said that “amid the increasingly complicated geopolitics, our city’s security and stability gives us a clear edge as an attractive place for physical gold storage.” The broker said gold is becoming increasingly popular with developing economies looking to diversify their foreign reserves, as seen in the huge builds by China, Russia and Turkey over the past few years. The BRICS summit begins next week, with de-dollarization a key part of the agenda, hosted by Russia.
The key outside markets today see the U.S. dollar index firmer. The benchmark 10-year U.S. Treasury note yield is presently fetching 4.091%. Crude oil prices are near steady and trading around $70.25 a barrel.
KitcoNews
