Investing.com - Gold futures rallied for a fourth day on Thursday, climbing to a two-week high as investors moved back in to the precious metal amid mounting fears over the debt crisis in the euro zone as well escalating geopolitical tensions between Iran and the West.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,621.65 a troy ounce during early European morning trade, climbing 0.55%.
It earlier rose by as much as 0.82% to trade at USD1,626.75 a troy ounce, the highest since December 21.
Gold futures were likely to find support at USD1,594.05 a troy ounce, the previous day’s low and resistance at USD1,643.65, the high of December 21.
Gold has regained some of its lost safe-haven appeal with the start of the new year, shunning its correlation with risk-sensitive assets and moving in line with the U.S. dollar as the threat of mass credit ratings downgrades for euro zone countries lingered.
France planned to auction up to EUR8 billion of 10 to 30-year bonds later Thursday, one day after an auction of German 10-year bonds met with subdued investor demand.
France is viewed as being at high risk of losing its triple-A sovereign credit rating in the coming weeks, leaving the euro vulnerable to fresh losses if the auction does not go well.
Gold’s safe haven status was further underlined amid growing tensions between Iran and the U.S. over the Islamic Republic’s nuclear program. Crude oil prices traded above USD103 a barrel, the highest level since early May as Iran’s threat to close the Strait of Hormuz has buoyed prices in recent days.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
Meanwhile, Wall Street lender Citigroup said in a report Wednesday that gold’s sell-off in the last few months of 2011 has “run its course and a rally is now back on the cards.”
“Unless we see a weekly close below USD1,535, we believe the uptrend in gold has resumed and a move to USD2,400 throughout the course of this year is on the cards,” the bank said in a report.
Elsewhere on the Comex, silver for March delivery jumped 1.1% to trade at USD29.41 a troy ounce, while copper for March delivery edged up 0.25% to trade at USD3.442 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for February delivery traded at USD1,621.65 a troy ounce during early European morning trade, climbing 0.55%.
It earlier rose by as much as 0.82% to trade at USD1,626.75 a troy ounce, the highest since December 21.
Gold futures were likely to find support at USD1,594.05 a troy ounce, the previous day’s low and resistance at USD1,643.65, the high of December 21.
Gold has regained some of its lost safe-haven appeal with the start of the new year, shunning its correlation with risk-sensitive assets and moving in line with the U.S. dollar as the threat of mass credit ratings downgrades for euro zone countries lingered.
France planned to auction up to EUR8 billion of 10 to 30-year bonds later Thursday, one day after an auction of German 10-year bonds met with subdued investor demand.
France is viewed as being at high risk of losing its triple-A sovereign credit rating in the coming weeks, leaving the euro vulnerable to fresh losses if the auction does not go well.
Gold’s safe haven status was further underlined amid growing tensions between Iran and the U.S. over the Islamic Republic’s nuclear program. Crude oil prices traded above USD103 a barrel, the highest level since early May as Iran’s threat to close the Strait of Hormuz has buoyed prices in recent days.
Higher oil prices tend to benefit gold as it enhances its appeal as a hedge against oil-led inflation.
Meanwhile, Wall Street lender Citigroup said in a report Wednesday that gold’s sell-off in the last few months of 2011 has “run its course and a rally is now back on the cards.”
“Unless we see a weekly close below USD1,535, we believe the uptrend in gold has resumed and a move to USD2,400 throughout the course of this year is on the cards,” the bank said in a report.
Elsewhere on the Comex, silver for March delivery jumped 1.1% to trade at USD29.41 a troy ounce, while copper for March delivery edged up 0.25% to trade at USD3.442 a pound.