OWN CORRESPONDENT, Johannesburg | Tuesday 11.30am.
GOLD shares powered ahead after Tuesday’s delayed open on the Johannesburg Stock Exchange, cheered by the bullion price’s rally to above $290.
Trade on the JSE was delayed two hours to give brokers time to adjust their books after Monday’s technical problems. By 11.20am, the All Gold index was up 5,13%, lifted by the precious metal’s rise to $292,30 an ounce — a gain of almost $6 on Monday’s New York close.
Trade on the JSE was delayed by two hours to give brokers time to adjust their books after technical problems on Monday.
Gold is set to break at least one more upside technical barrier in European trading hours on Tuesday after rallying sharply in Asia overnight, analysts said.
”In the short term it’s targetting $292 and that could happen in the next couple of hours,” Frederic Panizzutti at MKS Finance in Geneva said. ”After that it’s $295 and $300, and more short covering is imminent,” he added.
Dealers said gold’s sharp overnight rally was prompted after the price broke through $287 in Asia on short covering and speculative buying. ”The technical picture has moved into positive territory,” one said.
According to analysts, any weakness in the dollar will also push gold higher. ”The weakness of the dollar was one of the catalysts yesterday, and it could have the same effect today,” Panizzutti said. — Reuters