Gold Bullion (GOLD)

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Market Nuggets: Archer Financial's Platt: Gold Still Drawing Flight-To-Quality Buying

Tuesday June 05, 2012 8:57 AM

Comex gold is continuing to draw a safe-haven bid, says Stephen Platt, senior account executive with Archer Financial Services. He cites follow-through buying in the aftermath of a surge Friday following a weak U.S. jobs report. “The market responded in force, given the weak and deteriorating economic prospects,” he says. He also cites building worries about building budget deficits in Europe and the U.S. “The global economy seems to be in trouble, and that has encouraged some flight to safety, which had been lacking from this market for some time,” Platt says. So far Tuesday, gold is stronger even though the dollar is also higher. As of 8:48 a.m. EDT, Comex August gold was up $6.80 to $1,620.70 an ounce. The euro was down to $1.2438 from $1.2495 late Monday. Platt put the initial chart resistance for August gold around $1,630 an ounce, with support in the area from $1,607 to $1,600.

By Allen Sykora of Kitco News; [e-mail]
http://www.kitco.com/reports/kitcoNewsMarketNuggets20120605.html