The price of gold edged up today, based on a platinum surge and a slight drop in the U.S. dollar.
"I think it (gold's surge) has a lot to do with platinum actually. We have resurging worries about electricity supply after yesterday's discussion by Eskom. Clearly, the situation remains problematic," said James Steel, metals analyst with HSBC in New York.
"In addition to that, the dollar dropped a little today, and the fact that all commodities are up have driven the gold higher."
Friday's U.S. jobs report will determine which way gold will go in the short term, although I think what the Fed decides at the end of the month concerning interest rates will be a much larger factor over the next couple months.
As of 2:15 p.m. EDT, spot gold was at $903.40/904.20, an increase from New York's late Wednesday price of $898.00/898.70.
June delivery for June gold ended the session up by $9.40, finishing a $909.60 an ounce on the COMEX.
While some still believe there may be some downside to gold, in the long term most are still pretty bullish on the gold metal.
No comments:
Post a Comment