Gold Finally Reaches Above $1400
After testing and failing to close above the psychological resistance at $1,400 in eleven of the past twelve trading sessions, gold finally achieved a Comex settlement above this area today. Gold crept higher during the Asian trading day on decent physical volume but had its big push higher on the heels of US unemployment claims figures. The unemployment claims came in at 354,000 versus expectations of 342,000. The euro screamed higher on this news and was given further legs later on with worse than expected pending home sales data. Speculative shorts that have piled into gold as of late were stopped out at $1,400 and gold jumped up to make a high on the day of $1,417.70 basis the active August Comex gold contract. If gold can finish the week out trading above $1,400, speculative longs will be encouraged to enter the market again.
Silver has lagged behind gold today thus far and was stopped in its tracks at the 21 day moving average of $23.05. It will need gold to make fresh highs in order to challenge this area again. Support for the white metal is still intact at $22.
