Kitco spot up $46.30 at $1214.80. We are bearish but this move could run to $1240-45 before it resumes the downtrend.
From Kitco:
Gold prices saw a massive rebound Monday and hit a five-week high, after prices overnight scored a three-week low. The huge daily trading range in gold prices was the largest in years. Several factors worked to support gold Monday, including heavy short covering and buy stop orders triggered in the futures, and bargain hunting in the cash market. A weaker U.S. dollar index and a bounce in crude oil prices Monday--and even some safe-haven demand--were also featured to start the trading week and the first trading day of the month. Silver also posted a mammoth rebound after hitting a five-year low in Asian trading. February Comex gold was last up $41.90 at $1,217.40 an ounce. Spot gold was last up $49.90 at $1,219.00. March Comex silver last traded up $1.019 at $16.575 an ounce.
World stock and commodity markets were under pressure early Monday following Friday’s major collapse in crude oil prices—the day after an OPEC meeting that failed to produce production cuts by member nations. January Nymex crude oil prices dropped to a five-year low of $63.72 a barrel in overnight trading. However, as the U.S. day session began many markets recovered from their lowest price levels seen in overnight trading. The recovery in crude oil prices spilled over into buying in many other commodity markets.
News that Moody’s cut the Japanese government’s credit rating was credited with prompting some safe-haven demand for gold, especially from Asian investors....MOREHere's the action in the futures, $1214.50 last:
