Gold Hits 6-Week High Ahead of Key Events, Nears $1,300

KitcoNews/Daniela Cambone & Peter Hug/06-05-17

Gold remains bid after Friday’s short-covering rally on a weaker jobs number, this according to Peter Hug, global trading director for Kitco Metals. “The terror attack over the weekend in London has created more uncertainty on the outcome of the British election on Thursday, and the European Central Bank meeting on Thursday will be closely watched for signals from Mario Draghi on monetary policy,” he said. Gold prices were ending the day modestly higher and hit a six-week high Monday. Geopolitical developments in the Middle East and an increasingly bullish near-term technical posture are prompting trader and investor buying interest. Gold prices are now within striking distance of the key $1,300 mark. August Comex gold was last up $1.70 an ounce at $1,281.90. July Comex silver was last up $0.035 at $17.56 an ounce. “The overall market has a sense of nervousness that continues to encourage fund managers to deploy capital into the precious metals markets,” Hug said, adding that he sees support for the metal at the $1,278 area, with the next resistance level at $1,292.

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