By Adam Russell
SPDR Gold Trust (ETF) (NYSEARCA:GLD) and corresponding gold prices held onto gains for a seventh consecutive session today, near to 28-month highs. Bullish outlook for the yellow metal confirms the growing appetite for safe-haven assets even as Asian markets witnessed a rebound.
Upbeat economic data in the U.S. improved the sentiment towards equities. Report from Supply Management showed that U.S. service sector activity recorded seven-month high in June, driven by new orders and increased employment. Futures for August delivery was seen trading 0.10% higher at $1,368.45.
Jobs data to be released in U.S. will be key for investors, particularly after May hiring added to dismal outlook. Meanwhile, markets have already priced in the likelihood of delayed rate hike by the Federal Reserve due to shocking Brexit vote. RBC Wealth Management’s, George Gero, stated that the contracts on Comex have jumped to a record high during the year.
Miners benefitting from rally
HSBC analyst, James Steel, hold the view that gold will continue to march higher, however, profit booking activity is also likely to surge in coming days. Meanwhile, continued buying interest in bullion has turned out to be excessively generous for mining companies such as Barrick Gold Corporation (NYSE:ABX), which are seeing their stock prices advancing to new levels with each passing day.