PRECIOUS-Gold hits 6-1/2 week high as dollar slips

(Reuters) – Gold rose to a new 6-1/2 week high of $958.70 an ounce in Europe on Monday as the dollar weakened, prompting investors to buy into hard assets such as bullion, while firmer oil prices provided further support.

The metal remains in a range of $945-960 an ounce, with strong technical resistance towards the $960 mark and weakness in jewellery and investment demand capping gains.

* Gold hits highest since June 11 as dollar weakens

* Oil prices rally, boosted by stocks

Spot gold XAU= was bid at $956.45 at 1203 GMT, against $950.35 late in New York on Friday. U.S. gold futures for August delivery GCQ9 on the COMEX division of the New York Mercantile Exchange rose $3.50 to $956.60 an ounce.

Saxo Bank senior manager Ole Hansen said the dollar was acting as the chief driver of gold during the seasonally quiet summer period when liquidity is low.  Continued…


Categorised as: Gold News


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