Gold Tipped to Resume Upwards March
Source: miningmx (12/14/09)
"Gold prices rose and moved away from four-week lows on Monday. . ."
Volume remained light with Christmas and year-end holidays approaching, and the market was seen likely to face more liquidations by investors looking to close or lighten positions after this year's rally to record highs.
Gold was also aided by increasing risk tolerance after Dubai said on Monday it had received $10bn from Abu Dhabi to help it repay $4.1bn in an Islamic bond maturing on Monday. That also boosted the euro versus the dollar.
Ashraf Laidi, London-based chief market strategist of online trading firm CMC Markets, said it was positive news and would give a short-term boost to gold.
"Gold may be going back to $1,100 or $1,150, maybe $1,160, but I don't think this news is going to lead to any longer retreat in gold. I think the FOMC (Federal Open Market Committee) could be the force that may help gold sustain or go back up toward $1,190 or $1,200 if they really make no change on the statement," said Laidi.
Spot gold rose 1.1% to $1,125.80 per ounce as of 0605 GMT, compared to New York's notional close of $1,113.85.
Bullion was trading more than $100 below its record high $1,226.10 reached on December 3 but up about 27% from the start of the year.
U.S. gold futures for February delivery gained 0.7% to $1,127.70 per ounce, compared to $1,119.90 an ounce on the COMEX division of NYMEX. Futures were also off more than $100 from the record high of $1,227.50 hit on December 3.