LONDON—The spot price of gold crept higher but struggled to overcome strong resistance at $1,250 a troy ounce in quiet trade.
But some analysts predicted it could set a new record before the week it out, as the yellow metal's recovery following positive U.S. employment data Friday proves its resilience.
"What we are seeing is that any dip is followed by strong buying, which shows there is clearly still high interest," Commerzbank metals analyst Eugen Weinberg said.
Gold recently traded at $1,248, up $2.20, or 0.2% higher on the day.
Monday trade is likely to remain quiet given holidays in the U.S. and Canada.
UBS analyst Edel Tully said while the $1,250/oz level remains difficult to overcome, "the depth of gold's price knocks as markets temporarily return to risk-seeking mode have proven to be relatively shallow."
"The other positives right now are the continuing presence of physical demand on pullbacks, while scrap supply is contained despite the relatively high price," she said.
Mr. Weinberg said he wouldn't be surprised if gold surpassed its June ibntraday record of $1,265 this week, but warned a push to such highs "may not be sustainable."
"This is because speculators on the Comex are mainly driving the rally," he said.
Spot silver also firmed, adding two cents, or 0.1%, to $19.87 an ounce. The white metal is trading at its highest level since March 2008.
In the platinum group, trading was mixed. Spot platinum was up $10, or 0.6%, at $1,561 an ounce, while spot palladium was off $1, or 0.2% at $527 an ounce.
