Comex Gold Slightly Higher On Follow-Through In Sunday Electronic Trade; Market Awaits Yellen U.S. gold futures have a modestly stronger tone in Sunday night electronic activity on follow-through buying, traders said. One observer cited potential for a profit-taking pullback ahead of congressional testimony on the economy this week from Federal Reserve Chair Janet Yellen, while another suggested continuing geopolitical tensions still simmering in several regions could keep a bid under the market. As of 7:49 p.m. EDT, gold for August delivery was $2.60 higher at $1,340 an ounce on the Comex division of the New York Mercantile Exchange. September silver was up 4.9 cents to $21.51 an ounce. Sean Lusk, director of commercial hedging with Walsh Trading, cited follow-through that began in electronic trading late Friday after the pit session ended. “There was still a bullish bias going into the close and the weekend,” he said. “The recent trend is nobody wants to be short (hold bearish positions) for the weekend with all of the geopolitical stuff going on.” Otherwise, he continued, the Sunday evening opening was subdued. “We think gold’s strong finish to (last) week bodes for the bulls going into the current week, as we were concerned that we were not seeing any follow-through buying to accompany the $40/ounce spurt higher we saw set in on June 19th,” said Edward Meir, commodities consultant with INFL FCStone. “We therefore expect to see a little more upside action this week, with festering geopolitical hotspots providing support. Technically, the bulls seem to be in control of the market for now, Lusk said. However, he also warned of the potential for selling in the form of profit-taking with Yellen scheduled to testify on the economy Tuesday and Wednesday. As always, participants in a range of markets will listen carefully for any clues on the future of U.S. monetary policy. “I wouldn’t be surprised if we get a little profit-taking,” Lusk said. “If we trend up tonight and tomorrow to $1,350-60, it will probably become selling opportunities here. I think traders want to even up before she (Yellen) talks…at least before the first day’s comments….You never know what they are to say.” He added that he is not expecting a huge correction, however, but with potential down to $1,325-20 or so. https://facebook/pslcommodities?ref=hl
Posted on: Mon, 14 Jul 2014 04:55:04 +0000
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