Gold tops $1,200 for highest settlement in nearly a month

Gold futures rallied past $1,200 an ounce Thursday to settle at their highest level in nearly a month as the Federal Reserve signaled it will raise interest rates at a gradual pace, pressuring the U.S. dollar.

Gold for August delivery GCQ5, -0.13% leapt $25.20, or 2.1%, to settle at $1,202 an ounce on Comex. That was the highest settlement since May 22 for a most-active contract.

Prices began climbing in electronic trade Wednesday as the Fed indicated that while it expects its benchmark fed-funds rate to eventually rise to 3.75% in the “longer run,” the likely path to that level will be gradual.

Read: Fed keeps rates unchanged as it still eyes hikes this year

The Fed’s view pressured the U.S. dollar DXY, +0.14% which tends to benefit from higher interest rates. In turn, gold and other commodities found support from the dollar’s decline, as a cheaper dollar makes those commodities less expensive to users of other currencies.

“Investors are now of the belief that the Federal Reserve will take a long pause after the maximum of two interest-rate hikes,” said Chintan Karnani, chief market analyst at Insignia Consultants.

But gold will need to trade over $1,200 at least until Monday to attract short-term buyers, he said. The real test will be whether gold “breaks and trades” over $1,270 in the next few weeks.

Gold prices continued to trade higher following a spate of U.S. economic data Thursday. The May consumer-price index saw its biggest gain in more than two years, but was still lower than economists had expected. Weekly jobless claims fell to 267,000, holding ground near a 15-year low.

The Fed, which has been using various economic data to gauge the economy’s readiness for a rate increase, is generally expected in September to announce its first rate hike since 2006.

‘The best thing for gold bulls may be to get the first rate hike out of the way’.Brien Lundin, Gold Newsletter

However, “considering that the Fed has consistently over-estimated U.S. growth, and considering that they don’t have much of a buffer between current expectations and a negative growth number, there is plenty of room for a surprise to the downside,” said Brien Lundin, editor of Gold Newsletter.

Lundin said the “best thing for gold bulls may be to get the first rate hike out of the way” as the “ongoing when/if speculation only gives the speculators excuses to short the metal.”

Read: We’ll soon fine out if this gold rally is for real.

Other metals prices advanced Thursday, with July silver SIN5, -0.58% up 20.6 cents, or 1.3%, at $16.153 an ounce. July platinum PLN5, +0.20% added $10.10, or 0.9%, to $1,082.80 an ounce, while September palladium PAU5, -1.61% shed $1.70, or 0.2%, to $718.65 an ounce.

July copper HGN5, -1.30% rose 1.1 cents, or 0.4%, to $2.616 a pound.

Anybody remember?

Gold tops $1,200 for highest settlement in nearly a month

Published: June 18, 2015 2:29 p.m. ET

Prices rally 2% as dollar weakens after Fed meeting

By

MYRAP. SAEFONG

MARKETS/COMMODITIES REPORTER

****************************************

Gold tops $1,200 for highest settlement in nearly a month

Published: June 18, 2015 2:29 p.m. ET

Prices rally 2% as dollar weakens after Fed meeting

AFP/Getty Images

By

MYRAP. SAEFONG

MARKETS/COMMODITIES REPORTER

CARLAMOZEE

MARKETS REPORTER

Gold futures rallied past $1,200 an ounce Thursday to settle at their highest level in nearly a month as the Federal Reserve signaled it will raise interest rates at a gradual pace, pressuring the U.S. dollar.

Gold for August delivery GCQ5, -0.13% leapt $25.20, or 2.1%, to settle at $1,202 an ounce on Comex. That was the highest settlement since May 22 for a most-active contract.

Prices began climbing in electronic trade Wednesday as the Fed indicated that while it expects its benchmark fed-funds rate to eventually rise to 3.75% in the “longer run,” the likely path to that level will be gradual.

Read: Fed keeps rates unchanged as it still eyes hikes this year

The Fed’s view pressured the U.S. dollar DXY, +0.14% which tends to benefit from higher interest rates. In turn, gold and other commodities found support from the dollar’s decline, as a cheaper dollar makes those commodities less expensive to users of other currencies.

“Investors are now of the belief that the Federal Reserve will take a long pause after the maximum of two interest-rate hikes,” said Chintan Karnani, chief market analyst at Insignia Consultants.

But gold will need to trade over $1,200 at least until Monday to attract short-term buyers, he said. The real test will be whether gold “breaks and trades” over $1,270 in the next few weeks.

Gold prices continued to trade higher following a spate of U.S. economic data Thursday. The May consumer-price index saw its biggest gain in more than two years, but was still lower than economists had expected. Weekly jobless claims fell to 267,000, holding ground near a 15-year low.

The Fed, which has been using various economic data to gauge the economy’s readiness for a rate increase, is generally expected in September to announce its first rate hike since 2006.

‘The best thing for gold bulls may be to get the first rate hike out of the way’.Brien Lundin, Gold Newsletter

However, “considering that the Fed has consistently over-estimated U.S. growth, and considering that they don’t have much of a buffer between current expectations and a negative growth number, there is plenty of room for a surprise to the downside,” said Brien Lundin, editor of Gold Newsletter.

Lundin said the “best thing for gold bulls may be to get the first rate hike out of the way” as the “ongoing when/if speculation only gives the speculators excuses to short the metal.”

Read: We’ll soon fine out if this gold rally is for real.

Other metals prices advanced Thursday, with July silver SIN5, -0.58% up 20.6 cents, or 1.3%, at $16.153 an ounce. July platinum PLN5, +0.20% added $10.10, or 0.9%, to $1,082.80 an ounce, while September palladium PAU5, -1.61% shed $1.70, or 0.2%, to $718.65 an ounce.

July copper HGN5, -1.30% rose 1.1 cents, or 0.4%, to $2.616 a pound.

*******************************************************************************

Gold tops $1,200 for highest settlement in nearly a month

Published: June 18, 2015 2:29 p.m. ET

Prices rally 2% as dollar weakens after Fed meeting

AFP/Getty Images

By

MYRAP. SAEFONG

MARKETS/COMMODITIES REPORTER

CARLAMOZEE

MARKETS REPORTER

Gold futures rallied past $1,200 an ounce Thursday to settle at their highest level in nearly a month as the Federal Reserve signaled it will raise interest rates at a gradual pace, pressuring the U.S. dollar.

Gold for August delivery GCQ5, -0.13% leapt $25.20, or 2.1%, to settle at $1,202 an ounce on Comex. That was the highest settlement since May 22 for a most-active contract.

Prices began climbing in electronic trade Wednesday as the Fed indicated that while it expects its benchmark fed-funds rate to eventually rise to 3.75% in the “longer run,” the likely path to that level will be gradual.

Read: Fed keeps rates unchanged as it still eyes hikes this year

The Fed’s view pressured the U.S. dollar DXY, +0.14% which tends to benefit from higher interest rates. In turn, gold and other commodities found support from the dollar’s decline, as a cheaper dollar makes those commodities less expensive to users of other currencies.

“Investors are now of the belief that the Federal Reserve will take a long pause after the maximum of two interest-rate hikes,” said Chintan Karnani, chief market analyst at Insignia Consultants.

But gold will need to trade over $1,200 at least until Monday to attract short-term buyers, he said. The real test will be whether gold “breaks and trades” over $1,270 in the next few weeks.

Gold prices continued to trade higher following a spate of U.S. economic data Thursday. The May consumer-price index saw its biggest gain in more than two years, but was still lower than economists had expected. Weekly jobless claims fell to 267,000, holding ground near a 15-year low.

The Fed, which has been using various economic data to gauge the economy’s readiness for a rate increase, is generally expected in September to announce its first rate hike since 2006.

‘The best thing for gold bulls may be to get the first rate hike out of the way’.Brien Lundin, Gold Newsletter

However, “considering that the Fed has consistently over-estimated U.S. growth, and considering that they don’t have much of a buffer between current expectations and a negative growth number, there is plenty of room for a surprise to the downside,” said Brien Lundin, editor of Gold Newsletter.

Lundin said the “best thing for gold bulls may be to get the first rate hike out of the way” as the “ongoing when/if speculation only gives the speculators excuses to short the metal.”

Read: We’ll soon fine out if this gold rally is for real.

Other metals prices advanced Thursday, with July silver SIN5, -0.58% up 20.6 cents, or 1.3%, at $16.153 an ounce. July platinum PLN5, +0.20% added $10.10, or 0.9%, to $1,082.80 an ounce, while September palladium PAU5, -1.61% shed $1.70, or 0.2%, to $718.65 an ounce.

July copper HGN5, -1.30% rose 1.1 cents, or 0.4%, to $2.616 a pound.

*******************************************************************************

Anybody remember, April 16?

“Please switch, you deserve that broker.....just remember they are just inside sales form fillers, if they knew what they were talking about they wouldn't be working for you for peanuts......

I told you before, gold $2000. /oz by late 2015.....then onward and upwards from ther.. Please remember almost everything you see reported about the U.S. economy is either manipulated or straight out lies. They have municipalities and cities going bankrupt and you seriously think they aren't in very deep doodoo. Gold will make violent price swings with the economic disasters from all over the world, not just the U.S. Remember the derivatives....I think that was 1400 trillion dollars in magnitude....what do you think that will do to the price of gold and silver......?

It's really sad how little you and the people that recommend your posts actually know about how bad things are going to get.....too bad, so sad.”

Who was that guy? ;)