Gold News

Gold Jumps 4.5% to Dec. High, Catches "One Hell of a Tailwind"

From Chris Mullen at

Gold Prices rose roughly 1% to about $780 in Asia and added another 1% in London on Wednesday before accelerating these gains in New York and ended at its best level in December so far at $814.15.

For the day, Gold Bullion gained 4.56%. Gold Mining equities put on 10%.

Silver traded just mostly slightly higher in Asia and London before it also took off in New York and ended near its session high of $10.265 with a gain of 3.35%.

The Gold Price in Euros rose to about €620, platinum gained $27.50 to $829, and copper gained nearly 5 cents to about $1.47.

"Gold caught one heck of a tailwind, knifing through one resistance level after another," says Dan Norcini of "It is evident from the ferocity of the climb that the shorts were squeezed in a big way with a plethora of buy stops being touched off in the relatively low volume [Comex Gold Futures] trading conditions.

"Gold has had an undeniably strong technical performance. It is trading well above its 50-day moving average and peaked Wednesday right on its 100-day moving average. That level is very close to the downsloping trendline of the recent wedge formation on the daily chart."

Crude oil meantime rose in early US trade on more talk over Opec cuts before it reduced its gains after US inventory reports showed larger gasoline and distillate builds than expected.

Energy prices then ran back up near their earlier highs as it was leaked that Saudi Arabia has told major customers it will reduce supplies substantially next month, bringing its output below the implied Opec target of 8.47 million barrels per day.

The US Dollar index and Treasuries fell while the Dow, Nasdaq, and S&P rose 1% on hopes that a deal can be reached to bailout the automakers.

New data showed the US Treasury budget $164 billion in the red for November. Thursday at 13:30 GMT brings US Import and Export Prices for November, Initial Jobless Claims for 12/06 – expected at 525,000 – and the Trade Balance for October, expected at -$53.5bn.

Chris Mullen is chief content manager of the GoldSeek family of websites, a leading source of gold news, comment and mining-stock data for private and institutional investors.

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