A Real Rally? Sharp Gains For Gold as it Hits 2-Week High

Gold hits two-week high and closes in the green for the sixth straight trading day
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KITCO NEWS -- Is gold's momentum purely an event-driven rally? "I like it long-term but we are still running into some resistance," Bill Baruch of iiTrader.com told Kitco News Wednesday as the metal climbed to a two-week high. "I was eyeing next week's Fed meeting to put some pressure on the market," he added. The Chicago-based trader said that as long as gold holds $1250 an ounce, silver should be able to hold $17 an ounce. However, it might take until mid-June, after the U.S. Federal Reserve meeting, for prices to move higher, he explained. Gold prices ended the trading day with solid gains on safe-haven demand and as the U.S. dollar index and U.S. equity markets tumbled. Gold futures closed higher for the sixth straight U.S. trading session, settling at $1,258.70 an ounce. July Comex silver futures settled the day at $16.906 an ounce.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.