Gold Hits 15-Mth High Over $1,300 Before Mild Profit-Taking

(Kitco News) - Gold prices scored a 15-month high of $1,306.00 in June Nymex futures in morning U.S. trading Monday, before backing off the daily high as the session progressed, on some mild profit-taking pressure. A depreciating U.S. dollar on the world foreign exchange markets is a major bullish element working in the precious metals bulls’ favor. Some safe-haven demand amid nervous world stock markets and chart-based buying interest have also been featured in gold just recently. Silver prices also pushed to a 15-month high above $18.00 overnight, before also sliding on some profit-taking. June Comex gold was last steady $1,290.50 an ounce. July Comex silver was last down $0.264 at $17.55 an ounce.

A weakening U.S. dollar index that fell to an eight-month low Monday has been a bullish element for gold and the rest of the raw commodity sector recently. The rallying precious metals markets are one more clue the raw commodity sector has ended its bust cycle and is or will be embarking on a boom cycle.

The other “outside market” on Monday saw Nymex crude oil prices lower and trading just below $45.00 a barrel. Oil prices are still in a near-term uptrend after hitting a five-month high late last week.

The Japanese yen pushed to a 1.5-year high against the U.S. dollar Monday, which put more selling pressure on the Japanese stock market. Most other Asian stock markets were weaker Monday, on worries about the surging yen and the tanking Japanese stock market. China markets were closed for a holiday Monday.

U.S. stock indexes were higher and near their daily highs in afternoon trading, which also put a bit of selling pressure into the gold and silver markets.

Courtesy: Kitco News