Weak dollar helps gold to three week high
Gold has risen to a three-week high, supported by the weak dollar.
The value of gold has risen to a new three-week high, with the price of the precious metal boosted by a weak dollar.
Gold's value had slipped by as much as 27 per cent since March, but has seen a resurgence over the course of the last week.
Spot gold leapt by two per cent to $1,267.26 (£773) an ounce today (December 10th), which took it to its highest mark since November 20th, reports Reuters.
There was further good news for investors as US gold futures for February delivery were $29.80 higher at $1,263.10 today, as the metal rose from the five-month low hit earlier this month.
Gold responds to investors
Georgette Boele, FX and commodity strategist at ABN Amro, stated that the bouncing value of gold comes after investors attempted to force down the price of the precious metal at the end of last week to coincide with the release of the latest employment data from the US.
"Investors are closing positions and liquidity is drying up so the move is getting larger," she said, although she played down sustained upside for gold. Ms Boele added it is not likely to go too far above $1,300 despite rising in value in recent days.
"The overall view in the market is that it will go lower…so the people who are a bit nervous and recently put in place the (short) positions will be out. A lot depends of course on what the dollar is going to do."
Other metals have also risen as gold's popularity surges with investors, as silver continued to be influenced by gold and jumped 2.5 percent for the day to $20.30 per ounce, outperforming its main rival in the sector.
There was also a modest rise for platinum, which increased by one per cent over the course of the session to $1,385.25. However, it was not good news across the board, as palladium lost 0.1 per cent of its value to $732.25.
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