Gold and Silver Futures Hit One-Week High as Dollar Weakness and Oil Strength Spark Buying

Strategic Insights -

Gold and silver futures surged to a one-week high on Monday, driven by the weakness of the US dollar, strength in crude oil, and chart-based buying. The December gold contract reached $1,056 an ounce, while the December silver contract rose to $16.53. Analysts attributed the gains to a combination of factors, including the euro's strength against the dollar, positive sentiment in European equity markets, and the bankruptcy filing of CIT Group.

Key Takeaways:

  • Gold and silver futures reached a one-week high on Monday, with December gold up $15.60 to $1,056 an ounce and December silver up 27.5 cents to $16.53.
  • Analysts Andrew Montano and Carl Johansson attributed the gains to a combination of factors, including dollar weakness, oil strength, and chart-based buying.
  • The euro's strength against the dollar, positive sentiment in European equity markets, and the bankruptcy filing of CIT Group were also cited as contributing to the surge.
  • The market saw a pick-up in volume, with December gold futures taking out resistance at $1,050-$1,052 and later $1,055.
  • January platinum rose $13 to $1,339.30 an ounce, while December palladium gained $1.75 to $325 an ounce.

Statistics:

  • December gold futures rose $15.60 to $1,056 an ounce.
  • December silver futures rose 27.5 cents to $16.53.
  • The euro strengthened to $1.4770 from $1.4727 late Friday afternoon.
  • December crude oil rose 58 cents to $77.58.
  • The CIT Group's bankruptcy filing added to the support in gold, analysts said.

Sources:

  • Dow Jones Commodities News via Comtex (Nov. 2, 2009)
  • Goldessential.com (Nov. 2, 2009)
  • Dow Jones Newswires (Nov. 2, 2009)