Gold hits two-week high as investors return

By
Wednesday, October 19, 2016

Gold climbed to a two-week high Wednesday helped by a rebound in investor demand.

The yellow metal ended US$10.85 higher at US$1,269.05/oz despite a stronger US dollar, which moved above 91 euro cents.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

Gold has fallen from September's average of US$1,326/oz, partly due to a sell-off of long positions.

"The lower prices are attracting investment buying, ETF [exchange traded fund] holdings are at highs for the year and we would expect the lower prices of late to prompt some physical restocking," Metal Bulletin analyst William Adams said.

Gold's move above its 200-day moving average may encourage further technical buying from funds, Kitco's Peter Hug said. "It is premature to call a bottom, but a break above the US$1,278/oz level should usher in a test of US$1,300/oz," he added.

However, ABN AMRO expects gold to fall to US$1,100/oz in mid-2017 on investor selling and a 2016 US interest rate hike.

Silver ended four cents higher at US$17.69/oz.

[GRAFICO:FIGURA:ID_801]