LONDON (Commodity Online):Comex gold posted sharp gains Friday. “The crude definitely propelled it today,” says Mike Daly, gold and silver specialist with PFGBEST.
Nymex May crude gained $1.52 to $106.87 an ounce and at one point was over $108 a barrel. “When you have that kind of significant move, it’s going to cause inflationary buying,” Daly says.
The metal also got a lift from a softer U.S. dollar, with the euro up to $1.3260 as of 2:44 p.m. EDT from $1.3197 late Thursday.
Daly suggests traders may have been hesitant to hold short positions in gold over the weekend due to the potential for “saber-rattling” in the Middle East, particularly with geopolitical tensions surrounding Iran’s nuclear program, since a crisis could cause safe-haven buying of the metal. Comex April gold settled with a gain of $19.90 to $1,662.40 an ounce.