Gold prices moved higher on Monday, on track to settle at their highest in just over two weeks after touching an intraday high of $2,700 an ounce.
The rise in the precious metal’s prices comes after the People’s Bank of China resumed its purchases of bullion following a six-month hiatus, said Samer Hasn, senior market analyst at XS.com. “The central bank’s continued bullion buildup could offset the impact of easing geopolitical tensions in the Middle East and the strength of the U.S. economy,” he said.
On the other hand, the “continued flow of better-than-expected data from the United States, which strengthens the dollar, should make the continuation of the bullion trend more difficult” for dollar-denominated gold, Hasn said in market commentary.
Gold for February delivery climbed $38.10, or 1.4%, to $2,697.70 an ounce on Comex. A settlement around this level would be the highest for a most active contract since Nov. 22, FactSet data show.