Gold hit its highest in more than a week overnight on fund buying and short-covering, while silver followed in its wake to new multi-week highs as risk appetite returned across financial markets.
Spot gold rose to its highest since July 25 at USD$1,203 per ounce - up 1.3 percent on the day - before dropping back to $1,199.90, still $11.20 higher.
"It's definitely technical to some extent. If we hold $1,200 per ounce we could see $1,225 easily," a New York-based trader said. "The market's happy to see round numbers and it's been a while since we've seen these numbers so [traders] are happy to jump on it."
Meanwhile, recent reports of China’s plans to relax the rules governing the domestic bullion market have also helped to push prices higher, he noted.
Having broken through technical resistance at $1,194.90 and $1,196.70 per ounce, the next level stands at just $1,205. Support is $1,187 and $1,180.
NZD/USDtrading copied yesterday opening in the US at 0.7330, moving higher overnight, rebounding only to stop at yesterday’s high of 0.7356, then closed on a high note
DISCLAIMER: New Zealand Mint does not provide financial advice and does not employ financial advisors. Any opinions expressed within news articles are not intended as recommendations. If you are looking for investment advice, please seek independent, specific advice regarding your personal financial situation from a qualified professional.
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