adminSINGAPORE. — Gold rose yesterday, in another attempt to cross the key $1 300 per ounce level, as the dollar extended losses and as assets of the top bullion fund rose to their highest in more than two years. Gold has rallied sharply since late last week after the dollar slumped on the Federal Reserve’s cautious stance towards higher US rates and as the yen soared after the Bank of Japan (BoJ) stood pat on policy last week.
The metal rose to $1 303,60 per ounce on Monday, its strongest since January 2015, but ended the day lower on profit-taking. Spot gold had climbed 0,2 percent to $1 293,31 per ounce by 3.15am GMT, after earlier hitting a session-high of $1 296,81.
“I think gold can reach $1 300-$1 400 in the second quarter. Investors are following the yen-dollar movement and central bank decisions, and the ETF (exchange-traded funds) inflows are a very good sign,” Wing Fung Financial Group’s head of research, Mark To, said.
The dollar set a fresh 18-month low versus the yen on Tuesday. The dollar index hit its lowest since January 2015. The dollar weakness and strength in the gold price rally have triggered a sharp increase in money flowing into the SPDR Gold Trust, the world’s top gold-backed ETF.
Assets of the fund rose 2,59 percent, or 20,8 tonnes, to 824,94 tonnes on Monday in its biggest increase since February 22. — Reuters.
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