Gold Sees Sharp Gains, Hits 5-Week High and Breaks 50-Day Moving Average

Kitco News -- As gold prices glitter Thursday, the day after the release of the July’s Federal Open Market Committee meeting minutes, one analyst said the technicals are faring well. ‘We’re at a critical point -- roughly the $1,150-1,155 area — and a break and a close above this area, really signals something significant,’ Gary Wagner, editor of thegoldforecast.com said. Gold ended the U.S. day session sharply up and scored a five-week high Thursday, on strong safe-haven demand for the yellow metal. December Comex gold was last up $24.50 at $1,152.40 an ounce. September Comex silver was last up $0.326 at $15.505 an ounce. ‘We could actually see this market trade as high as $1,170 before correcting,’ Wagner added. Looking at the fundamentals, Wagner said that gold is garnering support from weaker equity markets as well as uncertainty in the global economy. ‘And that, of course, is affecting the Fed decision on when they will pull the trigger on rates,’ he said in an interview with Kitco News. Based on the charts, Wagner said if gold can break through some key Fibonacci retracement levels, the metal may be headed above $1,300 an ounce. ‘If we see a continuation of economic uncertainty globally, there’s going to be those safe haven buys [for gold],’ he said.