Gold rallied for a fourth day yesterday as the euro firmed to a three-month high against the dollar and as prices of other commodities such as crude oil jumped.
At 5pm in London, the metal fixed at $1 188.50 an ounce (R277 714 a kilogram), $19.50 higher than its second fix on Friday.
The yellow metal is showing signs of re-establishing its usual inverse link with the dollar and is benefiting from gains in other commodities, given that it is often bought as part of a commodity basket by investors.
Simon Weeks, the head of precious metals at the Bank of Nova Scotia, said gold had risen above the 100-day moving average of $1 183 an ounce on the back of currency moves and rising oil prices. "Next resistance is $1 200 to $1 205," he said. "People will liquidate safe havens and put risk on."
Among other precious metals platinum added $32 to fix at $1 587, palladium fixed $14 higher at $501 and silver advanced 45c to fix at $18.11. - Reuters
