Gold Rises 1%, Eyes Weekly Gain as Euro Recovers

Source:

"Gold bucked the trend in the wider markets, with European shares falling 0.6% and oil prices slipping to their lowest this year."

Reuters, Jan Harvey

Gold rose more than 1 percent on Friday, building on the previous session's hefty gains, as a recovery in the euro prompted fresh buying of the precious metal after prices slid to five-month lows earlier this week.

Spot gold was up 1.1% at $1,591.10 an ounce at 1332 GMT, having earlier touched a high of $1,594.10, while U.S. gold futures for June delivery were up $16.50/oz at $1,591.40/oz.

Gold posted its biggest one-day gain since Jan. 25 on Thursday in a reversal that has put it on track to end the week 0.7% higher, snapping two weeks of losses.

"For the first time in ages yesterday, gold divorced itself from the euro and started to improve on the crosses," said Simon Weeks, head of precious metal at the Bank of Nova Scotia.

"A lot of blame for the move has been laid at the door of (Thursday's weaker than expected)Philly Fed numbers, but I think the market was overcooked on the downside and having held above $1,522/oz was ripe for a bounce". . .View Full Article

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