Gold prices rose to a one-week high on Wednesday on technical trading and some safe-haven demand even as the US dollar held on to gains and stocks rose on risk appetite.
Spot gold was up 0.2 per cent at $US1,349.71 per ounce, after touching its highest since April 11, while US gold futures for June delivery settled up $US4, or 0.3 per cent, at $US1,353.50 per ounce.
‘We are up on safe-haven demand and a general commodities move,’ said George Gero, managing director of RBC Wealth Management, adding concerns over US sanctions on Russia still remain.
Gold broke above $US1,350, a significant resistance level for gold, said Activtrades chief analyst Carlo Alberto De Casa, and a close above this level would confirm positive momentum for gold.
‘If gold can remain above the $US1,350 level for a couple of days there is a good chance to see it jumping up to $US1,400,’ he said.
Kitco Metals senior analysts Jim Wyckoff said the chart positions for gold and silver are ’tilted in favour of the bulls, which is inspiring technically based buying interest at mid-week.’
The US dollar index , which measures the greenback against a basket of currencies, eased toward a three-week low reached on Tuesday. A weaker greenback makes dollar-priced gold cheaper for holders of other currencies.
US dollar losses were capped by a weaker pound which fell to a four-day low on Wednesday after British inflation unexpectedly cooled to a one-year low in March.
Robust corporate earnings this week capped gains in non-interest yielding gold and lifted stocks.
In physicals, Sri Lanka imposed a 15 per cent tax on imported gold with effect from Wednesday to prevent illegal smuggling of the metal from the island nation, a finance ministry official said.
Spot silver climbed 2.7 per cent at $US17.19 per ounce, after touching its highest since February 1 of $US17.26.