0
NEW YORK, Oct 26: Gold prices climbed at the New York Mercantile Exchange Thursday on currency-related buying and short covering as a weaker US dollar lifted the safe-haven metal, traders and analysts said.
Gold futures rose after grim US economic news pressured the dollar and bolstered key foreign currencies, making dollar-denominated precious metals cheaper for overseas buyers.
Traders bought back short gold positions, while increased physical and speculative buying boosted prices going into the COMEX close, market sources said.
But the market needs to post a solid close above near-term resistance at $278.80 an ounce in the December contract to look halfway decent again, Meger said.
COMEX Benchmark December futures settled $1.90 firmer at $278.20 an ounce, the strongest close since Monday, after ranging between $276.10 to $278.40.
Buying accelerated near the close as December vaulted prior chart resistance at $277.60 an ounce, traders said. Support now lurks down at the 200-day moving average of $274.30, and below that, near the trendline of $272.50 — areas the market was likely to retest in the short term, said Meger.
Spot bullion closed in New York at $277.00/7.50 an ounce, compared with $275.10/5.85 at Wednesday’s close and Thursday’s late London fix at $276.70.
But dismal US durable goods data from September had little direct effect on gold, although a falling US dollar against the euro and sagging equities supported the metal.
Durable goods orders fell a more-than-expected 8.5pc in Sept, while the US Labour Department reported jobless claims jumped to 504,000 in the week ended Oct. 20 from 496,000 in last week.—Reuters
