Gold Price Still Flying High
Source: Resource Investor, Philip Burgert (9/22/10)
"Gold prices are up 3.6% in September."
Globex futures prices for the Comex GCZ0 Dec. 10 contract reached as high as $1,296.50 an ounce and were last quoted at $1,293.7. That was up almost $20 from the previous settlement. Bullion had been at $1,273 an ounce on Globex before the Fed announcement in Washington and during the regular trading session in New York on Tuesday December gold had fallen $6.50, or 0.5%, to close at $1,274 an ounce.
Gold ETF holdings also reached a new record of almost 67.2 million troy ounces. Analysts with DailyFX noted that gold prices, which are up 3.6% in September, were outpacing the rise in holdings, which were up only 0.39% since the beginning of the month.
Silver was up as much as $0.50 in early morning Globex futures trading, with the Comex SIZ0 Dec. 10 contract reaching as high as $21.17 and was last at $21.08. The metal added $0.24, or 1.18%, on Tuesday and the gold/silver ratio fell slightly to 61.6, which shows that silver continues to outperform gold.
DailyFX analysts said prices continue to test resistance at the $21.00 figure, with negative Relative Strength Index divergence hinting that a pullback is ahead. A break past initial support at the $2050 bottom of a minor rising channel would expose a horizontal barrier at $20.19, they said.