Gold Traders Eye $1,300 - Will It Lead To Momentum Buying Or Profit-Taking Selling?
By Allen Sykora of ***** News
Friday May 06, 2016 13:10
(***** News) - Analysts say a key for the gold market next week simply will be what happens around the $1,300-an-ounce level - whether the upward momentum will continue after Friday’s U.S. jobs report, or whether bullish futures traders will decide to start exiting positions to capture profits.
Comex June gold temporarily got above $1,300 early in the week for the first time in 15 http://www.*****.com/news/2016-05-06/images/GoldOutlook05062016AS_Krugerrand_001.jpg
months as the U.S. dollar index hit a 15-month low. The yellow metal then fell back on profit-taking.
But after a weaker-than-forecast 160,000 rise in U.S. April nonfarm payrolls on Friday, the metal is challenging $1,300 again. Just before 1 p.m. EDT, June gold was at $1,295.70 an ounce, up $5.20 for the week.
“We’ll get momentum to the upside if we can close above it,” said Sean Lusk, director of commercial hedging Walsh Trading.
