Gold futures notched a fresh six-year high on Thursday, then
extended their gains into the electronic trading session on the back of dovish
comments from a Federal Reserve official, worsening tensions in the Middle East
and a drop in the dollar.
“News of the U.S. Navy shooting down an Iranian drone always adds fuel to the market, but the underlying buying momentum after a break of the $1,425 area has propelled gold back to the next big challenge,” the $1,450 area, Peter Spina, president and chief executive of GoldSeek.com, told MarketWatch late Thursday afternoon.
He also pointed to speculation in the market that a “large supranational organization” is acquiring all ounces of gold produced in North America, citing a tweet from Roy Sebag, founder of GoldMoney.
Read more about the activity on the Thursday afternoon metals market on the Market Watch website HERE