Gold rose to a one-week high on Wednesday

Gold rose to a one-week high on Wednesday, extending gains from the previous session, as upbeat economic data from the United States and Germany boosted market sentiment and a weaker dollar lent support.

The euro edged higher, riding on a sharp rise in German business sentiment and strong demand for Spanish debt, with investors watching the European Central Bank’s first offer of three-year loans to banks that many hope will help the region’s banks lower their funding costs

On the chart, spot gold pierced above the 200-day moving average, seen as a key support since 2008 until a week earlier when prices plunged.

“The rebound in gold today is related to the currency market,” said Dick Poon, manager of precious metals at Heraeus in Hong Kong. “But we don’t see much fresh buying from investors as the year end nears.”

Poon said gold could rise towards $1,650 by the end of the year, but the thinning trading volume could lead to great volatility in prices.

Spot gold rose as much as 0.8 percent to a one-week high of $1,627.65 before easing slightly to $1,625.85 an ounce by 0339 GMT. It rallied 1.3 percent in the previous session.

U.S. gold gained 0.6 percent to $1,628.

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Tags: Gold analysis, Gold future prices, Gold futures, Gold investment, Gold news, Gold price, gold price forecast, Gold prices, price of gold, Spot gold, Spot gold price

Posted by admin on Dec 21 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry