Gold futures headed higher Monday, adding to their climb to the highest level in more than three months as stocks in many parts of the world traded lower.
Gold received an “uplift on a slightly weaker [U.S. dollar], and with real yields turning more negative,” Ross Norman, chief executive officer at Metals Daily, told MarketWatch.
“Gold investors will feel encouraged that gold is starting to make a recovery after a rocky Q1, but confidence still looks fragile — you can see that when it approaches important technical levels it appears to do so tentatively,” said Norman. “In short, momentum is positive but conviction is light.”
June gold GCM21,
Gold prices held solid gains after a reading of manufacturing activity in the New York area, the Empire State Manufacturing Index, slipped to a reading of 24.3 in May from a more-than-three-year-high of 26.3 in April, the New York Fed said Monday.
The new orders index rose 2 points to 28.9 in May, while shipments rose 4.7 points to 29.7.
“Technically, June gold futures bulls have the firm overall near-term technical advantage amid a seven-week-old price uptrend in place on the daily bar chart,” wrote Jim Wyckoff, senior analyst at Kitco, in a daily note.
The analysts said the next upside target for bullion is to “produce a close above solid resistance at $1,881.00, while support for gold sits at $1,800 on the downside.
Bullion’s rise on Monday comes as major U.S. stock indexes traded broadly lower to start the week following a trading stretch marked by rising concerns about inflation.
Meanwhile, July silver SIN21,
Other metals traded on Comex moved up as well on Monday.
July copper HGN21,
