* Price resilience after Friday's dip cheers investors * SPDR gold ETF holdings rise more than 2 tonnes
(Updates throughout, changes dateline from TOKYO)
By Jan Harvey
LONDON, Dec 1 (Reuters) - Gold hit record highs near $1,200 an ounce on Tuesday as dollar weakness fuelled buying of the metal as an alternative asset, while investors speculating on further gains were cheered by its recovery from Friday's lows.
Spot gold XAU= hit a peak of $1,198.70 an ounce and was bid at $1,194.90 an ounce at 1021 GMT, against $1,179.10 late in New York on Monday.
"The fact that we are seeing the dollar weaken is helping to drive gold," said Ole Hansen, senior manager at Saxo Bank.
He said investors had been cheered by the strength of gold's recovery after it fell to below $1,140 an ounce last week, with the fall being met with strong fund buying.
"Everyone was waiting for that correction, and the way gold recovered suggested there was a lot of buying lurking in the wings (among) people who missed the opportunity to get into the market in the first place," said Hansen.
U.S. gold futures for February delivery GCG0 on the COMEX division of the New York Mercantile Exchange also hit a record $1,200.50 an ounce and were later up $13.70 at $1,196 an ounce. Continued...
No comments:
Post a Comment