LIVE MARKETS-Gold prospects near record highs

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GOLD PROSPECTS NEAR RECORD HIGHS

In the wake of Middle East tensions and falling Treasury yields, spot gold XAU= is tracking its biggest quarterly gain since April-June 2020.

With its recent surge, gold is now up around 12% so far this year at around $2,045 an ounce, putting it just shy of its record highs:



On Wednesday, spot prices for the yellow metal hit a high of $2,051.89, only around 1% shy of its record intraday high of $2,072.4951 hit on Aug. 7, 2020.

Of note, since the record high, and prior to this month, gold mounted two challenges of its peak.

In early March 2022, it hit a high if $2,069.89 before stalling and collapsing as much as 22% into a late-September 2022 trough. More recently, in early May of this year, gold hit a high of $2,072.19 before selling back about 13% into its early-October low.

Thus, traders are keenly focused on gold's prospects as it once again flirts with a record high.

A reversal below its late-October high at $2,009.29 may signal potential for another sharp sell-off. The monthly log-scale support line from 2001 will be around $1,775 in December.

In the event of new highs, however, there is a monthly log-scale resistance line drawn from the 2011 peak which will come in around $2,135 in December.

A resistance line from the 1980 high of $835 will be around $2,650 next month.

Meanwhile, despite gold flirting with record highs, gold stock indexes remain well below their peaks.

The Gold Bugs Index .HUI, an index of more than 20 the largest- and most widely held gold producers, is still down around 62% from its late-2011 record intraday high.


(Terence Gabriel)

*****


WEDNESDAY'S LIVE MARKETS POSTS SINCE 0900 EST/1400 GMT:


BIG RETURNS BECKON OUTSIDE THE MAGNIFICENT SEVEN -RBA - CLICK HERE


EVERY SILVER LINING HAS A CLOUD: GDP ET AL - CLICK HERE


CORD CUTTERS TO ECLIPSE PAY TV VIEWERS BY THE END OF 2023 - CLICK HERE


WALL STREET JUMPS AFTER "LOOSE FED LIPS SINK YIELDS" - CLICK HERE


S&P 500 INDEX POISED TO FOLLOW FUTURES' PREMARKET FLOURISH - CLICK HERE


FOR WEDNESDAY'S LIVE MARKETS POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE




(Terence Gabriel is a Reuters market analyst. The views expressed are his own)

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