Gold Boosted By Far East Physical Demand, Investors Seeking 'Undervalued' Asset
(Kitco News) -Gold is starting 2014 on a stronger note, getting a boost Thursday from good physical demand in the Asian region, traders said.
Some also said the metal might be drawing a second look from investors as an “undervalued” asset after posting its worst year in three decades during 2013. Gold has bounced since the middle of a holiday-lightened session Tuesday when short covering set in after the market held its lows for the year on chart for the spot market and also on a futures-continuation chart.
As of 7:54 a.m. EST, gold for February delivery was $11.90, or 1%, higher to $1,214.20 per ounce on the Comex division of the New York Mercantile Exchange. March silver was up 57 cents, or 2.9%, to $19.94 an ounce.
“The Far East came in as buyers,” said Afshin Nabavi, head of trading with MKS (Switzerland) SA. Physical demand appeared to pick up. Meanwhile, there appeared to be a shortage of physical metal availability for immediate delivery due to a number of closures around the world over the last week during the Christmas and New Year’s holidays, he continued.
Buy stops, which are pre-placed orders activated when certain chart points are hit, were triggered on the rise, Nabavi said. This happened in still-thin holiday conditions, enabling the February futures to jump from around $1,214 an ounce to $1,226 within minutes, before eventually going on to a high of $1,228 that was its most muscular level since Dec. 18.
MAKE SURE YOU GET PHYSICAL SILVER IN YOUR OWN POSSESSION. Don't Buy SLV, or Futures or Pooled Accounts or any other BS paper silver product .Remember anything on paper is worth the paper it is written on. Go Long Stay long the bull market have even started yet
Posted by ciblek