COMEX Gold
Short Covering, Technical Buying Send COMEX Gold Sharply Higher.
The combination of bargain hunting, short covering, a softer U.S. dollar and a break of nearby chart resistance enabled gold futures to spurt higher. COMEX June gold was up $19.10 to $1,383.80 an ounce and was as muscular as $1,397.90.As per Vision Financial Markets Research Analyst,Bargain hunting occurred in the wake of the earlier weakness, which took the metal as low as $1,336.30.A retreat in the U.S. dollar, which has been stronger lately he added. The June dollar index was down 0.312 point to 84.075.HSBC analyst noted that We have seen some heavy short covering. Citi Institutional Client Group futures specialist, adding that technical buying was encouraged on a break through chart resistance in the $1,364 area. When were able to stay above that, we found stops,"It looks like a technical move.
