Gold prices are firmer Thursday, building on gains from overnight strength, with the market taking out some technical-price chart areas, traders said.
At 10:30 a.m. EDT, most-active August gold futures on the Comex division of the New York Mercantile Exchange are up $21.20 an ounce at $1,293.90. Silver is up 44.2 cents at $20.220.
Market watchers said a combination of a weaker U.S. dollar, firmer crude oil prices and a view that the Federal Reserve is in no hurry to raise interest rates is support gold, triggering technical-chart buying.
“The dollar is reacting to (Fed Chair Janet) Yellen. We’re seeing follow-through buying… apparently people had to sleep on it a little to figure out what it meant to them. She didn’t do anything different,” said Frank Lesh, broker and futures analyst with FuturePath Trading.
Lesh said the perception now is that the Fed will delay when it ultimately raises interest rates, which is supportive to gold.
Sterling Smith, futures specialist for Citibank Institutional Client Group, said the early gains were likely fueled when August gold futures took out some technical-chart resistance around $1,284, which is where the 50-day moving average was.