Investor activity prompts gold to climb

Increased activity among investors has resulted in the price of gold climbing during commodity trading today (December 8th).

According to Reuters, the metal was up 0.6 per cent from the notional close recorded in New York yesterday, rising to $1,163.95 (£714.98) per ounce at 03:15 GMT.

This meant the precious metal moved away from the two-week low it had touched and the surge in interest came after the Federal Reserve said that the economy in the US is still fragile, prompting buyers to seek alternative forms of investment rather than purchase the dollar.

’A recovery in the dollar ... is coming to a halt and that favours gold,’ remarked Kaname Gokon of Japanese commodity brokerage Okato Shoji.

He added that bargain hunting among investors has also pushed the commodity higher, noting that those that have lagged behind the market trends ’need to buy on dips’.

Gold prices have been buoyant over the past few weeks and the metal for delivery in February briefly touched a new record high of $1,227.50 per ounce late last week. ADNFCR-2318-ID-19501494-ADNFCR