Spot gold on Tuesday touched a fresh 15-year high of $428,20 an ounce or the highest level since December 1988 due to dollar weakness against the euro, which touched a lifetime best of $1,2739 during the morning.
At 1205, gold was quoted at $427,70/oz — up $4,50 from Monday’s New York close of $423,20 — while the euro was quoted at $1,2737, up $0,0060 from late
New York trade on Monday.
“I thought $425 would be a significant resistance level as it was in 1988/89 but it didn’t prove to be. The gold price is being driven by the US dollar reaching a fresh low against the euro,” said a Switzerland-based analyst.
The gold price continues to move in one direction — upwards with no large profit taking happening yet.
Little major profit taking is likely to ensue as investors have few other investment options at this stage.
“The next target level for gold is $430. Funds continue to hold the upper hand in the bullion market,” the Swiss analyst added. – I-Net Bridge