Gold held steady below a five-week high, with investors keeping an eye on the dollar, which hovered near a record low against the euro.
Gold price and gold market news
The market remained thin overnight with gold trading within a $1 range until the close of Tocom. During the early European hours prices climbed to fix at $667.50 on the first London fix, up $4.5 from the previous AM one.
Gold firmed after Wednesday’s close, as slight buying interest was seen on the electronic trading. Tocom opened half a dollar higher with bids bringing us to the peak of $662.50 in the middle of the day.
Japanese market players had hardly any interest in the gold market overnight and prices remained hovering on both sides of the $650 level. Gold started to slip when London opened this morning and extended the Asian low to$646.50 after the first London fix of $647.75.
The market firmed throughout the Tocom session overnight, short covering and buying interest enabling it to close near the highs. During the early European hours gold continued its ascent, helped by a weaker dollar and firm oil prices.
Physical buying and short covering below $657 supported gold overnight, while offers around $658 capped the market. In Europe the very narrow range above $656 prevailed.
Japanese were on the sell side on the opening of Tocom, but gold managed to hold above $649 in Asia and settled in this area. In Europe prices were pushed up to the $651 level while fixing at $650.50 on the first London fix, $2 higher than the previous AM one.
The classic question has to be asked again, what is the price of gold? If we answer $xxx, then we have to ask the next question, what is the price of a $?
Gold firmed during the electronic trading and was bid throughout the Tocom session on continued short covering. Prices tested once the downside,but that was short lived. The precious metal soon extended the overnight high in Europe, fixing at $645.70 on the first London fix.
The market remained very thin overnight. Japanese were on the sellside on the opening of Tocom, but gold managed to hold above the $640support level and settled in this area. During the early European hours buying interest dragged prices higher and we fixed at $642.85 an ounce, down $6.7 from the previous AM one.