Gold Prices Hover Around $1,300

Source:

"Investors tentatively buy gold Monday. . ."

Gold prices were trading around $1,300 Monday as investors tentatively bought the safe-haven asset and as weak central bank sales during the past year supported higher prices.

Gold for December delivery was rising 20 cents to $1,298.30 an ounce at the Comex division at the New York Mercantile Exchange. The gold price Monday has traded as high as $1,301.30 and as low as $1,296.20.

The U.S. dollar index was adding 0.02% to $79.41 while the euro fell slightly to $1.34 vs. the dollar. The spot gold price Monday was flat, according to Kitco's gold index.

Record high gold prices were sparking some profit-taking and some tentative buying Monday. Investors were buying stocks after Friday's triple-digit rally in the Dow Jones Industrial Average, but retained interest in gold suggesting doubts over the global economy.

Traders are also shuffling their books as the third quarter comes to a close on Thursday. Some will need to ramp up their gold positions to show they own the metal while others might need to sell gold to show a profit.

"We anticipate further resistance short term on a mix of profit-taking and option/technical selling," says James Moore, analyst at thebulliondesk.com in his daily metals report. "But with little change in the broader economic picture and investors concerned about further devaluing of fiat currencies we expect the bullish trend to continue."

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