Gold rose as the dollar remained weak, having hit a record low against the euro in Asian trading hours, which sparked demand from those trading in other currencies as they found the metal to be cheaper.
Dollar-denominated gold moves in the opposite direction to the dollar and in line with high oil prices, as it is seen as a hedge against inflation. Oil, while lower on the day, was still within sight of a record high around 99 usd struck earlier this week.
The US was on holiday for Thanksgiving yesterday and although some players have returned to their desks, ongoing celebrations will again keep volumes on the light side and no economic data is scheduled for release.
Gold surged to 845.58 usd an ounce in early November, just 0.5 pct lower than its all-time record high price of 850 usd in January 1990.
At 12.02 pm, spot gold was trading up at 809.63 usd per ounce against 803.25 usd in late London trade yesterday. Earlier today gold hit a day-high of 815.60 usd.
Safe-haven buying has also helped lift gold's value. Credit-crunch jitters have hammered equity markets and gold has been bought as a hedge, as it is seen as a safe store of value.
"Sentiment remains bullish as the latest credit jitters prompt further safe-haven positioning by investors and speculators...the recent period of consolidation has improved the technical picture, signalling a re-test of 850 usd," said James Moore, analyst at TheBullionDesk.Com.
Some analysts warned however that after such dramatic price increases, short-term corrections are likely at some point.
"There is the potential for short-term price corrections, we would view these in the context of what remains a strong medium-term uptrend for gold," said Barclays Capital analysts.
There is also a strong possibility traders might sell off as the end of the year approaches to book profits.
"I'm generally still bullish on gold but there is a definite possibility of a correction at the end of the year" said Walter De Wet, analyst at Standard Bank.
Looking ahead, there is no important US economic data today to impact the dollar or gold. In other precious metals, platinum was steady at 1,468 usd per ounce from 1,468.50 usd.
Silver was up at 14.54 usd per ounce against 14.53 usd late in London yesterday, while palladium edged down to 349 usd per ounce against 349.50 usd.
Supplied by advfn.com
Dollar-denominated gold moves in the opposite direction to the dollar and in line with high oil prices, as it is seen as a hedge against inflation. Oil, while lower on the day, was still within sight of a record high around 99 usd struck earlier this week.
The US was on holiday for Thanksgiving yesterday and although some players have returned to their desks, ongoing celebrations will again keep volumes on the light side and no economic data is scheduled for release.
Gold surged to 845.58 usd an ounce in early November, just 0.5 pct lower than its all-time record high price of 850 usd in January 1990.
At 12.02 pm, spot gold was trading up at 809.63 usd per ounce against 803.25 usd in late London trade yesterday. Earlier today gold hit a day-high of 815.60 usd.
Safe-haven buying has also helped lift gold's value. Credit-crunch jitters have hammered equity markets and gold has been bought as a hedge, as it is seen as a safe store of value.
"Sentiment remains bullish as the latest credit jitters prompt further safe-haven positioning by investors and speculators...the recent period of consolidation has improved the technical picture, signalling a re-test of 850 usd," said James Moore, analyst at TheBullionDesk.Com.
Some analysts warned however that after such dramatic price increases, short-term corrections are likely at some point.
"There is the potential for short-term price corrections, we would view these in the context of what remains a strong medium-term uptrend for gold," said Barclays Capital analysts.
There is also a strong possibility traders might sell off as the end of the year approaches to book profits.
"I'm generally still bullish on gold but there is a definite possibility of a correction at the end of the year" said Walter De Wet, analyst at Standard Bank.
Looking ahead, there is no important US economic data today to impact the dollar or gold. In other precious metals, platinum was steady at 1,468 usd per ounce from 1,468.50 usd.
Silver was up at 14.54 usd per ounce against 14.53 usd late in London yesterday, while palladium edged down to 349 usd per ounce against 349.50 usd.
Supplied by advfn.com
No comments:
Post a Comment