Gold rallies to $1,010

image Bullion gained reaching $1,010 level, early morning today, as the precious metal continued to consider the dollar as direction provider, though a sense of caution prevailed due to the threat of heavy liquidation of futures positions.

Gold stood at $1,010.05 an ounce at 10:17 p.m. EDT, gaining 0.3% from the notional close in New York of $1,007.05, after climbing previously as high as $1,012.0.

Spot gold weakened during the previous session after the dollar turned higher, thereafter it slid by about 1% from the 18-month high of $1,023.85 hit last Thursday.

US gold futures for December delivery were at $1,011.7 an ounce, down 0.3%.

Noncommercial net long positions in gold futures in New York are at an all-time high, raising concerns that this together with the sharp rally, which has prompted the precious metal to rise as much as 16% this year, could lead to a bout of selling.

The SPDR Gold Trust holdings flat at 1,101.735 tonnes as of September 23, unchanged from the previous business day.
Gold buying by India, one of the world’s largest consumers, picked up due to the festival season when people traditionally buy ornaments as gifts for their loved ones.

Traders in Tokyo returned to the market after a three-day break from Monday to Wednesday due to a series of national holidays.

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