METALS

GOLD jumped 1.5 percent to a two-and-a half-week high above $1 200 an ounce yesterday as the dollar softened against the euro, due partly to better-than-expected German economic data.

Gold was fixed at $1 192.75 an ounce (R421 858 a kilogram) in London yesterday, $10.15 stronger than Monday’s final fix.

Spot gold was up 0.9 percent at $1 197.00 an ounce by 1.13pm in London after earlier reaching its highest since October 30 at $1 204.70. US gold futures also jumped to a near three-week high of $1 204.10. The metal has rebounded 6.4 percent from a four-and-ahalf-year low of $1 131.85 hit on November 7.

“We are seeing a corrective bounce, but it looks like we have done quite a lot from the $1 130 lows a couple of weeks ago,” Société Genéralé analyst Robin Bhar said. “Gold is benefiting from dollar weakness… but the bearish factors pointing to rising dollar, stronger economy, Fed (Federal Reserve) tightening, less inflation expectations have not gone away.” – Bloomberg