Gold prices climbed above the Key $1,500 mark Thursday to mark their highest finish in about two weeks, as a monthly drop in U.S. durable goods orders buoyed haven appeal for the metal.
The dismal durable goods number is helping boost gold prices as recession fears are again on the rise
Dec gold GCZ19, +0.68% on Comex tacked on $9, or 0.6%, to settle at $1,504.70 oz, after posting a 0.6% gainer Wednesday. Prices for the most-active saw their highest settlement since 9 October according to FactSet data.
Silver for December delivery SIZ19, +1.28%, meanwhile, added 22.4c, or 1.3%, to reach $17.804 oz
For gold, the Northside move is being amplified to a degree by market technicals, as futures broke above a key resistance level just above $1,500 and squeezed to a multi-week highs.
Expect to see some digestion in gold prices in the near term but as long as there is elevated demand for safe haven keeping a lid on yields, gold should be able to drift back up towards $1,520 oz.
Gold does best when people lose faith in central bankers, and while Mario Draghi left the ECB Thursday with negative rates and more QE, President Trump continues to push the Fed on cutting rates and re-starting stimulus. This race to debase makes gold a stand-out choice for long-term wealth protection.
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