Gold Watch

Gold prices surged by $25 last week for their biggest weekly gain in two months as safe-haven demand returned after China’s surprising decision to devalue the yuan. Beijing’s move also reinforced expectations that the US Federal Reserve will probably wait until December to raise interest rates, something most economists had expected in September.

Gold was also helped by declines in the dollar, lifting its appeal to holders of other currencies including the weak Thai baht. The afternoon fixing on Friday in London was $1,118.25, compared with $1,093.50 a week earlier.

After weeks of being oversold, gold saw heavy buying interest at the strong support of $1,080, but rebounds could still be capped by occasional profit-taking in the near term. Market participants estimate the price will remain between $1,100 and $1,130, and investors could speculate within that range.

US economic data and the release of the minutes of the July Fed meeting will influence the direction this week. for investment. The supports are at $1,100 and $1,080 and resistance levels at $1,130 and $1,150.