Gold Rallies To 3-Month High On Continued Safe-Haven Buying; Silver Also Pops To 3-Month High

(Kitco News) - Gold prices ended the U.S. day session solidly higher and scored another three-month high Wednesday. Once again, safe-haven and chart-based buying supported the yellow metal amid a still-uneasy world marketplace. Gold bulls also have building technical momentum on their side. Silver bulls got in gear today, also, and pushed prices to a fresh three-month high. April Comex gold was last up $16.20 at $1,143.50 an ounce. March Comex silver was last up $0.456 at $14.745 an ounce.

Gold prices were just slightly higher in late-morning dealings when a weaker-than-expected U.S. ISM non-manufacturing report was released, which gave the yellow metal a boost. The weaker ISM report also helped propel the U.S. dollar index sharply lower and put downside pressure on U.S. stock indexes, which in turn fueled more buying interest in gold. The other key “outside market” on Wednesday saw crude oil prices trade solidly higher, which also benefited the precious metals markets on this day.

Other U.S. economic data out showed the January ADP national employment report with a jobs rise of 205,000. This was a bit above market expectations but had little impact on the markets. The marketplace is awaiting Friday morning’s U.S. employment report for January. The key non-farms payroll number is expected to be up 185,000 following a strong rise of 292,000 in December.

Asian and European stock markets followed the lead of the U.S. stock indexes’ downside price action Tuesday and traded lower overnight. The world stock markets remain shaky and continue to closely follow the crude oil market.

Also unnerving traders and investors Wednesday were rumors that some big European banks may be in serious financial trouble.

Courtesy: Kitco News