The spot price of Gold is firmly higher for a second consecutive day in Europe Wednesday as sentiment in the market turns increasingly bullish following a break of a key technical level and an evident rise in physical demand.
Market analysts are now forecasting further gains for gold after the yellow metal broke above its 200-day moving average, just below $1,640 a troy ounce. At 1100 GMT, the price of Gold was $1,640.87/oz–up 0.6% on the day, and 4.9% on the start of the month.
There is increasing evidence of robust physical and investment demand, with month-to-date sales of U.S. Mint Eagles totaling over 82,500 ounces of Gold and 4.2 million ounces of silver, more than the combined sales of November and December.
Still, investors are likely to be cautious as uncertainty over the euro-zone debt crisis continues to plague the broader markets.
EasyForexNews Research Team