(Kitco News) – The gold market bulls are in high gear late Friday morning, as prices are solidly higher, have hit new highs for the week and are headed for a technically bullish weekly high close that would be a chart signal the gold market has put in a near-term bottom. After initially selling off mildly on a stronger-than-expected U.S. GDP report, the gold market has pushed higher as the U.S. dollar index has sold off. Many are wondering why the greenback would weaken in the face of a strong U.S. economic reading. The bigger trading picture suggests that after hitting a two-year high on Thursday, the USDX is just seeing a normal downside correction heading into the weekend.
Meantime, crude oil prices are sharply lower despite the solid U.S. GDP data. Like the USDX, crude prices hit a six-month high this week and the futures traders are ringing the cash register to take some profits on a Friday. Still, the steep crude market sell off is a bit unnerving to traders and that may be providing some light safe-haven demand for gold. June gold was last up $10.00 an ounce at $1,289.70.
By Jim Wyckoff
For Kitco News
Contact jwyckoff@kitco.com
www.kitco.com
