Tokyo: Gold hovered near an 11-month high just below the psychological level of $700 (Rs29,141) an ounce on 23 April 2007, while platinum was supported by the prospect of the launch of more exchange-traded funds (ETFs).
Gold was also buoyant as funds continued to shift into the metal based on the dollar’s bearishness and strength in energy prices.
“Bullish technicals are drawing buying in gold. The strength in platinum is also lifting sentiment for gold,” said Shuji Sugata, manager at Mitsubishi Corp. Futures and Securities.
“Basically, gold is strong fundamentally backed by the dollar’s weakness and firmer energy prices. Gold is heading towards $700, but the market may need fresh factors to test that level,” Sugata said.
As of 0319 GMT, spot gold was trading at $692.60(Rs28,832.62 per ounce)/693.10, slightly up from $691.70/692.20 late in New York on Friday. It matched Friday’s high of $693.60 — the highest since May 18 last year.
Precious metals were helped by a recovery in China’s stock markets last week, which eased worries that a possible Chinese interest rate hike could slow growth.
Cash gold has climbed nearly 6% from a low of $656.20 at the start of the month. Fresh investment funds were heading into gold from the start of the second quarter.
Gold was supported at the seven-day moving average of around $688 and the 14-day average of $681.
Japanese precious metals rose sharply, with gold futures up more than 1% and platinum reaching a record high.