Gold To Soon Hit 3 Month High

 

Gold futures rose Tuesday to score their highest finish in more than three months, with global equity markets suffering from sharp losses, partly sparked by the resurgence of global growth fears as China halted a two-session rally.

December gold GCZ8, +0.90%  rose $12.20, or 1%, to settle at $1,236.80 an ounce, lifting bullion to the highest settlement for a most-active contract since July 16, according to FactSet data.

A flight to the safety of traditional havens, like gold, came after the Shanghai Composite Index SHCOMP, -2.26%  gave back part of a two-day rally, falling 2.3%. In the U.S., benchmark stock indexes traded broadly lower, with the Dow Jones Industrial Average DJIA, -0.50%  down more than 200 points as gold futures settled.

U.S. Treasury yields also moved sharply lower, “as government bonds rebound, possibly as a result of investors moving out of equities and moving into the relative safety of government debt,” said Fawad Razaqzada, technical analyst at Forex.com. That also helped to support gold as an investment haven.

“Gold is now testing potential resistance around the $1,238/40 area so there is a possibility for a pullback,” Razaqzada told MarketWatch. “However, the metal will remain supported for as long as Monday’s low at $1,220 holds.”

Meanwhile, December silver SIZ8, +1.39% rose 20.6 cents, or 1.4%, to settle at $14.793 an ounce.

Palladium futures PLZ8, +1.58%  extended their hefty climb from Monday to log a record settlement.

source: marketwatch.com

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