Gold Price Recovers Further as Oil Up Five Percent

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"Whether or not it will be sustained, I guess it really depends on what rhetoric we get from Russia in the days ahead. I believe it's possible we may go on further from here," said Darren Heathcote of Investec Australia in Sydney. "There seems to be a bit of a return to favour commodities again in the last couple of days. I think the physical buying has helped to support it as well," he said.

Gold advanced on Friday and held near its strongest in more than a week as investors shifted some of their money back into bullion on a weaker dollar and tensions between Russia and the United States that lifted oil. In the physical sector, jewellers in Thailand cashed in on gold's gains but there was light buying from other consumers which helped premiums for gold bars stay above $1 to spot London prices as tight supplies persisted.

Gold rose to $833.90/834.90 an ounce from $832.40/833.40 an ounce late in New York. Gold rallied to $839 an ounce on Thursday, its strongest since August 11, also driven by news of a bullion coin shortage in the U.S.

Despite the gains, gold was still well below a record high of $1,030.80 an ounce hit in March. Analysts pegged resistance levels at $840 and $850 an ounce.

"Whether or not it will be sustained, I guess it really depends on what rhetoric we get from Russia in the days ahead. I believe it's possible we may go on further from here," said Darren Heathcote of Investec Australia in Sydney. "There seems to be a bit of a return to favour commodities again in the last couple of days. I think the physical buying has helped to support it as well," he said.

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