Dollar’s weakening versus euro supports gold prices

image Tuesday bullion prices flat near $1,000 per ounce, upheld by a fall in the dollar versus the euro, while investors were mostly cautious on whether

the metal’s recent run to an 18-month high was overdone.

Thus, early in morning today, Spot gold soared by 0.2% to $1,000.85 per ounce at about 00:12 GMT, compared to New York’s notional close of $998.65. It hit $1,011.55 on Friday, its highest since March 2008.

Friday, cold closed 1% higher above $1,000 an ounce for the first time since March 2008 as a weakening dollar and inflation fears stirred investment demand for bullion.

Rising investment demand for gold due to a weaker dollar and inflation fears is likely to offset a decline in jewellery buying this year, leading to an overall rise in appeal.

Gold prices are likely to correct after their current run above $1,000 an ounce, but may rebound to as high as $1,100 within the next six months if inflation fears grow.

U.S. gold futures for December delivery GCZ9 grew by 0.2% hitting $1,002.80 per ounce. Monday, the contract fell $5.30 to $1,001.10 on the COMEX division of the New York Mercantile Exchange, retreating further from a Friday high of 1,013.70, its highest since February, 20.

The SPDR Gold Trust GLD reported its holdings to climb by 1.221 tonnes to

1,078.851 tonnes on Monday, marking their first rise since September,3.

Thus, the following prices were seen at the metal market at about 0:16 GMT:

Metal Last Change Pct chg Day ago pct MA 30 RSI

Spot gold $1001.50 $2.85 +0.29% +11.65% $860.10 73

Spot silver $16.64 $0.13 +0.79% +38.90% $11.29 75

Spot plat $1311.00 -$2.50 -0.19% +38.15% $948.98 77

COMEX gold $1001.60 $113.40 +12.77% +11.35% $857.64 72

TOCOM gold 2,944 361 +13.98% +12.84% 2,476 54

TOCOM plat 3,846 1106 +40.36% +39.10% 2,659 60

TOCOM prices are in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices are in $ per ounce.


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