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Gold prices rose today, reaching a peak at the same time in two weeks, which was associated with the weakening of the US currency.
"Fluctuations in the dollar remains the main factor for the gold, and the periods of significant growth is mainly the result of short covering. Support appears to be $ 1181-1182 and resistance - for $ 1,200, "- said a trader MKS Capital James Gardiner.
Marked influence exerted by German data show that economic sentiment rose for the first time this year in November, after a negative value in the previous month, beating economists' expectations. Indicator of economic sentiment rose to 11.5 ZEW from -3.6 in October. Economists had expected a slight improvement in the index to 0.9. The result was the highest in the past four months. The current conditions index rose to 3.3 from 3.2 in the previous month. Economists had forecast the index falling to 1.7. Economic sentiment index for the euro area rose by 6.9 points to 11 in November. The index of current conditions in the region, meanwhile, fell by 2.9 points to -59.7. "The recent growth figures for the euro area suggest that the economy is stabilizing, which contributed to an increase in the indicator. Nevertheless, the economic situation remains fragile, not least because of the continuing geopolitical tensions, "- said ZEW President Clemens Fuest.
The course of trading also influenced expectations that the European Central Bank may start buying up assets, including gold, to deal with low inflation. Speaking before the Committee on Economic and Monetary Affairs of the European Parliament on Monday, ECB President Mario Draghi said the bank's unconventional stimulus measures may include the purchase of various types of assets. According to board member Yves Mersch ECB, in theory, the Central Bank may begin to buy government bonds, gold, ETF, and even property to avoid a long period of low inflation.
Meanwhile, it was reported that the world's largest reserves of the gold-traded exchange-traded fund SPDR Gold Trust on Monday rose by 0.33% to 723.01 tons, marking the first increase since November 3.
The cost of December gold futures on the COMEX today rose $ 10.9 to 1194.40 dollars per ounce.
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