Comex gold futures rose modestly, closing +0.7% at $1,230.30/oz., but it was enough to send the yellow metal to its highest finish for a most-active contract since July 31.
"We have a bullish outlook through the end of the year and into next year," says HSBC precious metals analyst Jim Steel. "Our average is $1,274/oz. this year, which means we'd continue to have a drive up into the end of the year."
Last week's stock market selloff has been a factor in gold's rise, as well as the drop in the 10-year yield from a recent 3.25% back to 3.15%, says Bart Melek, head of commodities strategy at TD Securities, but the risk-off move may have given way to another catalyst: "Now there's a view the Fed might not be as aggressive" in raising rates, he says.
Meanwhile, last week’s positive reversal for gold left much of the market wrong-footed, helping accelerate the move, according to Saxo Bank's Ole Hansen.
ETFs: GLD, GDX, NUGT, GGN, DUST, IAU, PHYS, SGOL, GOEX, UGLD, SGDM, UGL, DGP, GLL, ASA, GTU, GLDI, OUNZ, RING, DZZ, DGL, DGLD, TGLDX, DGZ, PSAU, GOAU, GDXX, GYEN, BAR, GEUR, GDXS, GLDW, GHS, UBG, QGLDX, GHE, MELT, AAAU, GLDM, IAUF
Subscribe for full text news in your inbox