Comex Gold Extends Record High As Equities TumbleComex gold kept extending its record high in after-hours screen trading as investors sought a safe haven for their money as equities broke lower. The S&P futures have fallen below their 200-day moving average and the Dow Jones Industrial Average is below the psychologically important 12,000 level, leading to buying in gold, says Charles Nedoss, senior market strategist with Olympus Futures.
The market is showing disappointment in the budget and deficit-ceiling bill that has been signed into law, he says. “Now it’s done and you have both sides realizing in 11th-hour deals, nobody gets what they wanted and you probably get the worst deal you could put together,” Nedoss says. Further, the stock market already was still reeling from a weak report on consumer spending. Nedoss points out that both the dollar and gold have risen rather than trading inversely to one another, reflecting a safe-haven trade. As of 4:04 p.m. EDT, Comex December gold was $37.20 higher at $1,658.90 an ounce. It peaked at $1,661.80, a record for a most-active contract.