The most liquid gold contract closed this Monday, 25th, with gains, recovering part of Friday’s losses amid optimism with central bank movements, given that interest cuts by the Federal Reserve (Fed, the central bank North American), European Central Bank (ECB) and Bank of England (BoE) seem increasingly closer. The fall in the dollar this Monday also contributed to the metal’s gains.
Gold scheduled for delivery in April closed up 0.76%, at US$2,176.40 per troy ounce, on Comex, the metals division of the New York Mercantile Exchange (Nymex).
Analysts point out that central banks around the world continue to increase their gold reserves.
TD Securities writes that new selling activity is unlikely to be recorded unless the price of gold returns below $2,100 per troy ounce. “This points to a large margin of safety against a fall in prices”, he says in a report, pointing out that the next inflation data from the United States are the next drivers that could raise prices.
According to SP Angel analysts, investors have also shown concern about the high level of public debt in the United States and China, and therefore have resorted to other security investments, such as gold.
Furthermore, metal prices are being driven by a combination of macroeconomic factors.
*With information from Dow Jones Newswires
Tags: Gold closes higher eyes global interest policy supported weak dollar
