The spot price of gold on Tuesday climbed to a three-week high of $521,03 a troy ounce on buying interest in very thin holiday trade, traders said.
At 10.45am, gold was quoted at $519,90/oz, up $2,58/oz from the metal’s previous close.
“The market for gold is very thin and gold is higher on a bit of buying. Gold could test $518/oz or maybe $525/oz today. The range for the rest of today, for gold, is likely to be between $518/oz to $525/oz,” a European gold trader said.
In mid-December 2005, gold soared to a long-term high of $541/oz and expectations in the gold market are that gold could move above that level in 2006.
“Despite the risk of a downwards correction, similar to that seen at the start of 2005, the outlook for the precious complex remains very upbeat with the combination of positive supply and demand fundamentals, good physical and growing investor demand set to push the metal beyond the $541/oz high seen in early December and continue the bull-trend across the year,” UK-based TheBullionDesk.com analyst James Moore wrote. — I-Net Bridge