Gold hits $1433.50 on Syria, Buy, Sell stops for US Dec Gold
Jim Wyckoff, an analyst at Kitco has given the following buy and sell stops for December Gold futures at Comex: Buy Stops: $1434, $1440, 1450 and 1465, Sell Stops: $1413, 1400, 1395, 1388.
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US Gold futures climbed to a high of $1433.50 per ounce as markets have turned nervous on possible attack on Syria by USA after the government regime used chemical weaps against its citizens. This has caused renewed interest in safe haven assets such as gold and treasures. Crude oil prices have also risen sharply recently, on worries about disruptions to oil exports from the Middle East.
Spot gold rose to $1432.5 before falling back to $1427 levels on Wednesday trade.
Jim Wyckoff, an analyst at Kitco has given the following buy and sell stops for December Gold futures at Comex: Buy Stops: $1434, $1440, 1450 and 1465Sell Stops: $1413, 1400, 1395, 1388.
Geo-political tensions have always favoured gold and crude oil, according to HSBC bank quoted in Kitco news. "Given investor uncertainty surrounding the Middle East, bullion has room for further gains in the near term should energy commodities including WTI (West Texas Intermediate) crude oil continue to rally, in our view."
CME Group said in their daily morning report on Gold that investors need to track the US dollar movements for further cues.
"The bulls have to be cheered by news of another inflow of capital into a closely watched gold derivative instrument yesterday, as that suggests gold is being seen as an attractive investment again. Favorable investment talk for gold was also seen from a major US bank overnight, who suggested that gold prices were now in the process of "Bottoming". The bull camp is cheered by the slight rise in open interest in gold futures this week, but less than impressive volume on the gains this week might be disconcerting to some gold players. News from the South African labor negotiations is mixed to slightly bearish, as representatives of the National Union of Mines indicated that the miners were not "strike happy". However, with the ultimatum for strikes from some unions at the end of this week, traders should be poised to see breaking news at some point over the coming three trading sessions. Comex Gold Stocks were unchanged at 7.003 million ounces."