Sharp Gains for Gold, Hits 8-Mo. High, Closing in on $1,200

(Kitco News) - Gold prices ended the U.S. day session sharply higher, hit an eight-month high and came within a whisker of touching $1,200.00 on Monday. Strong safe-haven demand was featured as world stock markets are again under selling pressure to start the trading week. Chart-based buying interest is also prevalent as gold prices are presently in a near-term uptrend. And the weakening U.S. dollar index recently is also working in favor of the precious metals market bulls. April Comex gold was last up $39.40 at $1,197.00 an ounce. March Comex silver was last up $0.617 at $15.415 an ounce.

There was keen risk aversion in the marketplace Monday as most world stock markets were under selling pressure. U.S. stock indexes were seeing solid losses and at or near fresh for-the-move lows in afternoon trading Monday. Dropping crude oil prices are once again being blamed for weakening equities prices. Nymex crude oil prices were trading just below $30.00 a barrel in afternoon action Monday. U.S. Treasuries were also seeing safe-haven buying interest Monday.

Some Asian markets, including China’s, were closed Monday for the Lunar New Year holiday.

U.S. economic data due for release Monday was light. The pace picks up as this week progresses.

Courtesy: Kitco News