Gold starts February up @ $1,128/oz.

[ixic]

Gold Up, Hits 3-Month High, As Bulls Continue To Gain Momentum
Monday February 01, 2016 13:27

(Kitco News) - Gold prices ended the U.S. day session higher and poked to a three-month high Monday. Continued safe-haven demand and technical buying interest are featured in the yellow metal so far this year. Some of the money flowing out of world stock markets early this year is moving into the safe-haven gold market. April Comex gold was last up $11.10 at $1,127.50 an ounce. March Comex silver was last up $0.072 at $14.315 an ounce.

 

There was more downbeat economic data coming out of China Monday. The January official China manufacturing purchasing managers index (PMI) was reported at 49.4 versus 49.7 in December, for the sixth month in a row of a lower reading than the previous month. A number of 49.6 was expected for the January report. A reading below 50.0 suggests contraction in the sector. The services sector, or non-manufacturing, PMI for China came in at 53.5 in January versus 54.4 in December. Chinese stock indexes fell on the PMI reports.

 

Meantime, the Euro zone manufacturing PMI came in at 52.3 versus 53.2 in December. The January number was right in line with forecasts. European stocks were weaker Monday.

 

The U.S. manufacturing PMI for January came at 48.2 versus 48.0 in December. A reading of 48.0 was expected. The January number marked the fourth month in a row of contraction (below 50.0). 

 

U.S. stock indexes were lower Monday afternoon. The weaker worldwide stock market postures are and have been supportive for safe-haven gold.

 

Nymex crude oil prices were sharply lower to start the trading week and hovering just above $31 a barrel. The other key “outside market” saw the U.S. dollar index solidly lower Monday.

 

 

Technically, February gold futures prices closed nearer the session high and poked to a three-month high today. While the gold bears still have the overall near-term technical advantage, prices are in a choppy six-week-old uptrend and the bulls have technical momentum on their side. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,150.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at 1,100.00.

[Dinarian64]

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