Update: Gold Pushes Above $1,300, First Time Since Late May

SOURCE: [KITCO-news] – Gold futures pushed above $1,300 an ounce for the first time since May 22, spurred on by technical-chart buying, a weaker U.S. dollar and the sense the Federal Reserve remains dovish.

The market is also getting underpinned by the continued geopolitical concerns out of Iraq and militants trying to take control of more cities there.

At 11:30 a.m. EDT, most-active August gold futures on the Comex division of the New York Mercantile Exchange are up $25.70 an ounce at $1,298.40. It rose as  high as $1,300.50. Silver is up 56.7 cents at $20.345.

Gold prices have been stronger all session, starting with the early trade, said Sterling Smith, futures specialist for Citibank Institutional Client Group. 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.

“That likely took out some (buy) stops and pushed it higher,” he said.

Buy stops are preplaced buy orders that are triggered when prices move above certain levels.

The momentum generated on the technical-chart buying propelled prices through the 200-day moving average and 100-day moving average, traders said. The weaker U.S. dollar and technical chart momentum fed off each other, Smith said.

Gold trading volume is much higher Thursday than it has been in previous trading sessions, said Tommy Capalbo, precious metals broker at Newedge. He said about 121,000 lots traded so far Thursday, compared to about 65,000 to 70,000 in recent sessions.

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