Proven gold futures traded close to the highest price in six and a half months on Tuesday boosted sentiment for the precious metal after recent moves by the world’s central banks to support economic growth ..
On the Comex division of the New York Mercantile Exchange, futures trading, gold for delivery Dissembrlidol at 769.45, $ 1 per ounce during European morning trade, gaining 0.27%.
Gold futures rose to the highest level of 787.55, USD1 an ounce on Thursday, its strongest level since February 29.
Gold prices were likely to find short-term support at 751.95, $ 1 per ounce, the lowest price since September 18 and resistance at 792.25, 1, dollars per ounce, the highest price since February 29.
Market sentiment found some support after the release of encouraging data German consumer confidence.
Consumer awaited the results of GfK index German confidence, which has remained unchanged at 5.9 in October, in line with expectations. Economic expectations index rose for the index to minus 17.2 points in September from 18.9 points in August minus.
While investors remained jittery amid uncertainty over whether Spain will require a bailout to solve the sovereign debt crisis.
Scheduled to play Madrid introduced a draft annual budget for next year on Thursday, and announced structural reforms, while will show the bank stress test results on Friday. In addition, it is expected that the ratings agency Moody’s to complete the review of assessments in Spain later this week.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, rose 0.07% to hit 79.64.
The strength of the U.S. dollar usually affect gold, because it alleviates the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Gold drew support amid expectations that central banks around the world will be doing monetary easing measures to stimulate the global economy.
The precious metal rose in the past after monetary stimulus measures. Investors tend to rush for gold amid concerns that excess liquidity will lead to the erosion of the value of paper currencies and fueling inflation.
Contracts rose gold futures nearly 10% since the beginning of August, supported by recent monetary stimulus efforts by major central banks around the world.
Elsewhere, Comex silver for December delivery rose 0.67% to trade at $ 34.210 an ounce, while copper rose for December delivery rose 0.72% to trade at $ 3.758 a pound.