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Gold Rises, Crossing $1,280 Intraday, With $1,300 Target In Sight

Published 12/26/2018, 03:38 PM
Updated 12/26/2018, 03:56 PM
© Reuters.
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Investing.com - Wall Street's rebound isn't scaring off gold bugs, who've got a host of worries on their side to bolster the precious metal's standing as a safe haven.

The S&P 500 and the Dow jumped more than 4%, percent each while the Nasdaq surged more than 5% in the first day of trading following the Christmas holiday. To help soothe investors' nerves, a White House official said the head of the Federal Reserve faced no risk of losing his job and that President Donald Trump was happy with his Treasury Secretary.

U.S. crude oil futures, meanwhile, jumped 9% in a surprise halt to a market that had been in freefall for more than two weeks.

Even the dollar index surged, climbing 0.6% to 96.583.

But gold held its own, hitting a new six-month high above $1,280.

Comex gold futures settled up $1.20 at $1,273 a troy ounce. It was the seventh higher close in eight sessions for the yellow metal.

The session high was $1,282.30, a peak not seen since June.

Analysts said gold retained its safe-haven edge as some of America's problems were more worrisome than that of U.K.'s Brexit or the economic troubles of Europe.

"The current trade war with China, the government shutdown, higher interest rates, the U.S.'s growing debt, as well as consumer household borrowing, which continues to set new all-time highs, are just some of the problems we have, not in any particular order," said Walter Pehowich, analyst at Dillon Gage Metals in Addison, Texas.

Gold's strength in recent weeks has intensified speculation that it is headed back to the $1,300 territory last seen in June.

In other precious metals on COMEX, silver futures rose 1.9% to $15.10 a troy ounce by 3:35 PM ET (20:35 GMT).

Palladium gained 1% to $1,187.25 per ounce, while sister metal platinum rose 1.2% to $799.

In base metals, COMEX copper rebounded by 1.3% to $2.72 per pound.

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