The gold price was firm during Thursday morning sessions, holding above the psychologically important $1,200 level, following the previous day’s rally, which saw the yellow metal peak to its strongest in five weeks.
Spot gold was last at $1,215.20/1,216.20 up $0.50 on the Wednesday’s close.
A softer dollar has helped support the yellow metal, the greenback was last at 1.1386 against the euro following a spate of negative numbers from the US.
Silver at $17.18/17.23 was little changed from the previous $17.12 but holding around two-month highs having broken through key levels in the previous session.
“Silver doubled gold’s move higher yesterday and crossed a number of important resistance zones including the 100 daily moving average, a strong February downtrend line, a sequence of April/May peaks and daily moving average, all of which we closed above. This puts the metal on solid footing now to challenge the March and April peaks between $17.30-17.40,” said MKS Capital.
The market will now look to see if the metals can hold at these levels, having struggled to do so following recent runs higher.
“The recent price rally came in lieu of physical buying, which suggests to us that the paper markets may have been the primary driver of the rally. While we do not discount the possibility of further price gains in the near term, bullion may need to break over the technical 200-day moving average of $1,218 in order for the rally to be sustained, said HSBC analyst James Steel
“Gold and silver prices have once again jumped higher and the weaker dollar and concerns over Greece seem to be driving that, we wait to see if this rally stalls like many of the earlier ones have. Our overall view is that bullion prices may be able to climb as we think corrections in other markets, notably equities and bonds, could well prompt investors to look for a safe-haven and gold may well offer that for a while,” FastMarkets analyst William Adams added.
In today’s data, the US has PPI, unemployment claims and core PPI numbers set for release. Morning sessions may be quiet today with France and Germany absent from the market for a bank holiday.
Platinum at $1,149/1,155 was up $4 and palladium at $784/789 was up $1.