• Monday, February 26, 2024
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BusinessDay

Gold races above $1,300 …set for best week in 6 months

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Gold rose to three-month highs above $1,300 an ounce last Friday and looked set to post its biggest weekly gain in six months as weak U.S. data raised fears about eco¬nomic growth, hurting the dollar.

Spot gold was up 1 per¬cent to $1,315.10 an ounce by 1325 GMT after ear¬lier rising 1.3 percent to its highest since Nov. 8 at $1,319.80. It was up around 4 percent for the week, the largest such gain since mid-August.U.S. gold fu-tures for April delivery also hit a three-month high of $1,319.90 an ounce, up for an eighth straight session in the longest winning streak since July 2011. They were up 1.2 percent at $1,315.70.freda

The technical picture has improved over the past few sessions, but the 14-day relative strength index (RSI) for spot gold was at 71. A reading above 70 is con¬sidered to represent over¬bought territory.

“Gold has gone through a couple of important lev¬els at $1,270 and $1,300, and if it manages to close around $1,310 we might look for some further gains to be made, although it could drop back as it is looking a bit toppy on the RSI,” Mitsubishi analyst Jonathan Butler said.

“The dollar has been suffering, giving some strength to gold in the past two weeks … there is some support, and sentiment has changed somewhat for the short term.”

The dollar fell 0.3 per¬cent versus a basket of cur¬rencies, having hit its low¬est level since Jan. 2 earlier.