adminlevels in 17 months.
“I don’t think there are many other influences in the market, certainly in the Asian market anyway, beyond currencies right now. So I think it’s very much going to be the case of watch the dollar index,” ANZ senior metals strategist Nick Trevethan said in Singapore.
“We could see prices push up a little higher, probably to US$1 67,90. And the bottom is probably around US$1 665. It’s a very narrow trading range.”
In theory, a stronger dollar makes bullion more expensive for holders of other currencies, while rising oil prices should lift gold’s status as a hedge against inflation, dealers said.
Gold hit a high of US$1 669,31 an ounce and stood at US$1 667,96 by 6.37am GMT, up US$1,07 from the previous close. Japan, China, Hong Kong, Singapore, South Korea and Taiwan are among the major centres in Asia closed on Monday for holidays. US gold rose US$1,80 an ounce to US$1 668,70 an ounce.
Elsewhere, data from the US Commodity Futures Trading Commission could point to renewed interest in the metal as an inflation-hedge. Speculators raised net longs in gold by 4,845 lots to 86,926 in the week to Febraury 5, the CFTC’s Commitments of Traders report said.
Gold rallied to a record of about US$1 920 in September 2011, when a worsening debt crisis in Europe sparked a buying rush. – Reuters.
Online Reporter