Gold has risen to hit its highest level in over a week. It was lifted by renewed risk aversion. Poor economic data from the US revived worries about the health of the global economy. Traders said as a major gold producer and consumer, China's move to broaden its gold market has pushed up gold prices.
Spot gold rose to as high 1,194 US dollars an ounce during today's trading, but eased slightly after hitting an intraday high. Gold prices have closed strongly on New York Mercantile Exchange over the past couple of days. The exchange extended gains for a 5th consecutive session, capping the longest rally in almost four months. This was supported by the weaker dollar and much stronger demand for physical gold from Asian buyers.
Purchases from jewelers and investors in China pushed up premiums for gold bars to their highest in nearly two years on Tuesday. Dealers in India enjoyed brisk sales ahead of the festival season.
- China's gold price may change in near future 2010-07-09