Gold on Monday, December 19, extended its recovery from a 10-1/2-month low hit last week, as the US dollar slipped from a 14-year peak against a basket of currencies.
Spot gold gained 0.7 per cent to $1,141.61 an ounce by 0651 GMT. The bullion touched $1,122.35 on Thursday, its weakest since Feb. 2.
Gold now appears to have found a base, however, upside will be limited as investors look to other markets for yield, ANZ said in a note.
US gold futures gained 0.6 per cent to $1,143.60 per ounce on Monday. Gold is likely to rebound to $1,160-$1,180 levels before the year-end, said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
Silver gained 0.3 per cent to $16.12 per ounce. Platinum fell 0.6 per cent at $921.50. The white metal jumped 3.7 per cent on Friday. Palladium was down 0.7 per cent at $690.25 an ounce, after falling to a one-month low in the prior session, TheEconomic Times reports.
