Federal Reserve Governors Statement Puts Gold Back in the Safe Haven Trade

Gold futures closed up $37.40 an ounce at $1,829.00 today. Prices closed nearer the session high today and saw bargain hunting and some fresh safe haven buying interest after a U.S. Federal Reserve Board governor said he wanted aggressive easing of monetary policy by the Fed and was worried about the U.S. economic recovery.

The gold bulls have made a strong recovery from last week's spike low on the daily chart, to suggest last week's low will become a "reaction low" on the daily bar chart. If prices can continue to work sideways to higher in the near term, then bulls would gain confidence the uptrend on the daily chart has been restarted.

Silver futures closed up $0.774 an ounce at $41.375 today. Prices closed nearer the session high today. The silver bulls have the solid overall near term technical advantage. Prices are in a choppy, two month old uptrend on the daily bar chart. Bulls' next upside price objective is producing a close above strong technical resistance at the August high of $44.295 an ounce.

The U.S. stock indexes closed higher again today, as investor risk appetite has upticked this week following last Friday's speech by Fed Chairman Bernanke, who was a bit more upbeat on the U.S. economy. Some bullish comments from a Federal Reserve Board governor today, on further monetary easing, also helped to boost the stock indexes. The bulls this week have gained some fresh upside technical momentum. Traders are now awaiting Friday morning's key U.S. jobs report.


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