Gold Up, Silver Hits 21-Month High, Amid Bullish Outside Markets

(Kitco News) - Gold prices ended the U.S. day session moderately higher Wednesday, on technically related buying as the bulls remain in firm near-term control of the charts. Bulls are also encouraged by safe-haven gold’s ability to show resilience amid better risk appetite in the marketplace at mid-week. Meantime, silver prices were sharply higher hit a 21-month high Wednesday. August Comex gold was last up $9.10 an ounce at $1,326.90. July Comex silver was last up $0.512 at $18.355 an ounce.

The key “outside markets” were in a bullish posture for the precious metals markets today, as the U.S. dollar index is weaker on a corrective pullback from recent strong gains. Meantime, Nymex crude oil prices were higher today and have rebounded nicely from the recent Brexit-related selling pressure.

Global stock markets were mostly higher Wednesday and U.S. stock indexes were higher in afternoon New York trading. The past two days of upside price action in most world stock markets suggests most traders and investors may have over-reacted to last week’s Brexit “leave” vote. The British pound and Euro currency have also rallied off of their lows following the pounding they took after last week’s Brexit vote.

However, the benchmark European government bond—the 10-year German bund—still sees its yield in negative territory at present. This suggests there remains keen uncertainty exhibited by the Europeans, regarding the survival of the European Union, in its present form, in the months and years ahead. Such also suggests there will continue to be a flow of safe-haven demand for gold during that same timeframe.

Courtesy: Kitco News