Comex gold futures prices ended the U.S. day session sharply higher, near the daily high and hit a fresh seven-week high Thursday. Safe-haven buying was featured amid the sell- off in the U.S. stock market and the escalation in violence in Egypt. Technical buying was also seen Thursday around midday when key chart resistance levels were penetrated on the upside, which trigger buy-stop orders.
The U.S. dollar index also sold off sharply around midday, which also gave the gold bulls some fuel. The gold market bulls gained fresh upside near-term technical momentum on Thursday. December gold was last up $29.10 at $1,362.70 an ounce. Spot gold was last quoted up $26.80 at $1,363.75. September Comex silver last traded up $1.198 at $22.985 an ounce.
Reports Thursday said around 525 people have died the past two days in anti-government violence in Egypt. Government troops have reportedly shot citizens protesting in the streets. This news helped to support the safe-haven demand in the gold market. Egypt controls the Suez Canal, through which a good percentage of the world’s oil traffic and other commerce flow.