Gold Rallies on Improving Market Sentiment

October 15 00:00 2011

NEW YORK, October 15 (FinanaceEnquiry.com) – Gold marked its biggest weekly gains in six weeks on Friday. Positive outlook of EU debt crisis and weakening dollar paved way for rallying bullion.

The spot gold price gained 0.9% at 1,680.39 an ounce by 2.29pm EDT, the most actively traded contract for December delivery rose BY 0.9%, settled at 1,683.00 troy ounces on the Comex of NYME. There are many underlying reasons going on in the market for such trend. Primary reasons would be the inclusion of France and Germany into the crisis resolution plan, China’s inflationary trends, strong US retail sales and higher corporate earnings. The demand for physical gold is expected to increase by the biggest bullion buyer of the world- India, due to the upcoming wedding seasons and Diwali, a religious festival.

The UBS AG bank said, “Gold is among UBS AG’s three top commodity picks,”

An analyst from Thebulliondesk.com, James Moore  said “Gold remains underpinned by good volumes of physical and retail investment purchases,”

Other precious metals showed similar trend and expected to rise further. Nymex Platinum for January Delivery rose by 1.5% and settled at $1,554.90 a troy ounce, Palladium for December delivery gained 4.5% to reach $620.55 a troy ounce and Silver December delivery  was up by 1.6% and stood at $32.173a troy ounce on Nymex.

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