Metals Stocks: Gold perks back up with all eyes overseas

By Shawn Langlois, MarketWatch


Bloomberg

LOS ANGELES (MarketWatch) — Now that heightened geopolitical risks have injected some volatility in markets, gold is drawing plenty of attention, with prices moving higher on Monday.

At last check, gold for August delivery /quotes/zigman/11829489/delayed GCQ4 +0.16%  was up $ 2.90 at $ 1,312.30 an ounce. September silver /quotes/zigman/12294966/delayed SIU4 +0.28%  tacked on 7 cents, or 0.4%, to $ 20.96 an ounce.

A day earlier, investors seemed to overcome fears of heightening global risks spurred by last Thursday’s Malaysia Airlines crash to give up the perceived safety of gold. Gold prices dropped on Friday after logging strong gains in the immediate aftermath of the tragedy.

Looking ahead, Walter de Wet of Standard Bank says that price sensitivity in Asia could provide a headwind that keeps gold from logging any meaningful advances.

“The renewed political tension may introduce a marginal risk premium into the gold price in coming days,” he said.” However, unless the situation deteriorates substantially, we doubt that additional demand introduced via political risk can offset the decline we expect from Asia if the gold price rallies too high.”

Meanwhile, hedge funds cut their bullish gold bets for the first time in six weeks, Bloomberg reported, citing U.S. Commodity Futures Trading Commission data. Short holdings making bets on a gold drop jumped 32%, the largest gain in seven weeks.

Elsewhere in metals trading, October platinum /quotes/zigman/19534176/delayed PLV4 +0.28%  rose $ 5.60, or 0.4%, to $ 1,495.50 an ounce, while September palladium /quotes/zigman/18010104/delayed PAU4 +0.11%  added 60 cents to $ 882.10 an ounce. High-grade copper for September delivery /quotes/zigman/678463/delayed HGU4 +0.14%  was flat at $ 3.18 a pound.

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/quotes/zigman/11829489/delayed

US : U.S.: Comex

$ 1,311.50

+2.10 +0.16%

Volume: 9,526

July 21, 2014 2:28a

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/quotes/zigman/12294966/delayed

US : U.S.: Comex

$ 20.95

+0.06 +0.28%

Volume: 3,018

July 21, 2014 2:28a

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/quotes/zigman/19534176/delayed

US : U.S.: Nymex

$ 1,494.10

+4.20 +0.28%

Volume: 365.00

July 21, 2014 2:25a

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/quotes/zigman/18010104/delayed

US : U.S.: Nymex

$ 882.50

+1.00 +0.11%

Volume: 219.00

July 21, 2014 2:26a

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/quotes/zigman/678463/delayed

US : U.S.: Comex

$ 3.19

+0.0045 +0.14%

Volume: 7,022

July 21, 2014 2:28a

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Shawn Langlois is an editor and writer for MarketWatch in Los Angeles. Follow him on Twitter @slangwise.

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