Gold prices are hovering near a five-week high
Precious metal prices ended the U.S. day session moderately higher on Monday, 20 October 2014 at Comex. Gold prices are hovering near a five-week high. The precious metal was boosted by more safe-haven demand and bargain hunting. Traders and investors are still a bit nervous following last week's volatility and uncertainty, which could return. Gold prices recovered from two days of losses on Monday on a combination of global economic uncertainties and overseas demand.
Gold for December delivery was up $5.70 to settle at $1,244.70 an ounce.
December silver added 2 cents to $17.35 an ounce.
In the previous session, gold ended lower as stocks staged a recovery on Friday. Still, prices closed with a weekly gain as mounting fears of slowing global growth gripped investors and sent them seeking safety.
The market place was relatively calmer to start the new trading week, after a weekend that saw no significant events to further stoke trader and investor worries. Crude oil and the U.S. dollar index prices were near steady Monday. Crude oil is hovering near the two-year low scored last week, while the dollar index is not far below its recent four-year high. Traders and investors will continue to closely monitor these two key outside markets, which have a daily impact on many other markets.
In overnight news, reports said the central banks of Japan, China and the European Union have all began conducting some forms of monetary policy easing, albeit not aggressive moves. This comes at a time when the U.S. Federal Reserve is planning to wind down its own quantitative easing this month. There are growing notions the U.S. Fed may have to back-track on its quest to end its aggressive monetary policy stimulus. U.S. economic data released in the next few weeks will help determine which monetary policy path the Fed will take.
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There were no major U.S. economic data due for release on Monday, but the pace picks up on Tuesday.
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