GOLD prices rose 1% yesterday as investors took advantage of a fall in prices to two-and-a-half-month lows to buy into the metal, but a firmer dollar against the euro weighed on sentiment. Spot gold was up at $879,20/oz-$880,70/oz by mid-afternoon from $868,80 late in New York on Monday, when it hit a low of $864,30, its weakest since late January.
US gold futures for April delivery on the Comex division of the New York mercantile exchange rose $7,30 to $878,80/oz. “Gold’s performance today is impressive, even more so given that the dollar has strengthened,” David Thurtell of Citibank said.
“Perhaps people who are keen on the whole gold story as a safe haven are thinking it hasn’t been this cheap in a long time,” he said.
Gold prices are still down about 13% from an 11-month high above $1000 hit in February.
