Articles
-
P.M. Kitco Roundup: Gold Higher in "Sell the Rumor, Buy the Fact" Move after U.S. Budget/Debt Agreem
(Kitco News) - Comex gold prices ended the U.S. day session moderately higher Wednesday, on a surprise rally in the face of an agreement among U.S. lawmakers on a budget/debt ceiling deal that will reopen the government. Short covering was featured in both gold and silver markets. December Comex gold was last up $7.90 at $1,281.00 an ounce. Spot gold was last quoted up $0.90 at $1282.50. December Comex silver last traded up $0.159 at $21.35 an ounce.
The rally in gold after the budget/debt deal became apparent is a classic “sell the rumor, buy the fact” scenario that many times plays out in markets. Markets many times factor into their prices expected fundamental news events well before they ever occur. Then markets can see corrective price reversals when the event actually does occur. It’s another example of how markets can and do frustrate large numbers of traders. Indeed, many traders had become too confident that gold would experience a significant sell off if U.S. lawmakers passed budget/debt legislation before Thursday’s deadline. At the least Wednesday’s modest rally in gold prices gave the bulls a psychological boost, even if Wednesday’s price action was technically insignificant.
U.S. economic data released Wednesday had little impact on markets as focus was on the U.S. budget and debt ceiling talks. The Federal Reserve’s beige book, out in the afternoon, contained no significant news that traders did not already know and markets did not react.
Focus of the market place now turns to when will the next batch of U.S. economic data be released now that the government is set to reopen. The key October employment report, among many other economic reports, were postponed the past 16 days due to the U.S. government shutdown.
The London P.M. gold fix is $1,273.50 versus the previous P.M. fixing of $1,270.50.
Read full article
-
Authorized Person for MEX NEPAL
Mob: +977 9856030634 -
Biratnagar Branch Manager
Mob: +977 9852033934 -
Our Clearing Member
-
Our Banking Partners
-
-
-
