Home » Gold Ends Higher on Safe-Haven Demand; FOMC a Non-Event

Gold Ends Higher on Safe-Haven Demand; FOMC a Non-Event

January 30, 2014 by

goldA.M./P.M. Roundup with Jim Wyckoff: 

Comex gold futures ended the U.S. day session with moderate gains Wednesday on short covering and bargain hunting following selling pressure on Monday and Tuesday. Importantly, there was also some safe-haven buying interest in gold as the market place remains concerned about the strains on some emerging market currencies. April gold was last up $11.50 at $1,261.80 an ounce. Spot gold was last quoted up $5.50 at $1261.75. March Comex silver last traded up $0.112 at $19.615 an ounce.
 
The major news of the day came from Turkey, as its central bank raised its key lending rate sharply, up to 12%, to try to stave off the deflating Turkish lira. The South African central bank also raised its interest rates on Wednesday, following Turkey’s move. History shows that  problems with smaller currency markets can spread to the majors and create a  worldwide contagion. This is what has the gold market supported by safe-haven demand.
 

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