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05 March 2024

Gold may again cross $1,200

Gold may again cross $1,200. (AFP)

By Shashank Shekhar

If gold rises to and holds above $1,167 an ounce for two days it could again breach the $1,200 barrier, said Dubai-based analysts.

The immediate prediction is that gold will rise above $1,190 an ounce.

Oil and gold rose together yesterday with gold rising by more than $20 an ounce and oil reaching a 15-month high. The dollar dropped, affirming its long-established direct relationship with bullion.

Gold rose to $1,158.98 an ounce in yesterday's trading session, the highest since the beginning of 2010. Bullion's rise in percentage terms stood at 1.83 per cent.

Crude oil for February delivery rose to $83.63 a barrel, up 1.1 per cent from the previous day's close. It later reverted to $83.57 at 4pm Dubai time. The dollar dropped 0.64 per cent against the euro, with $1.45 equal to one euro.

"The prime reason for the rise of gold and oil is the non-farm payroll data released last week. The dollar began falling after that and the trend continues," said Anoop PS, Assistant Vice-President at JRG International Brokerage DMCC.

"Gold spiked this morning in Asia in a thin market with Japan closed. The move higher in New York on Friday was sparked by the latest US employment data, which reversed the recent positive sentiment for the dollar," said Jeffrey Rhodes, CEO of INTL Commodities DMCC.

Tom Pawlicki, an analyst with investment advisory and brokerage firm MF Global, said energy markets are expected to hold in a mixed-to-higher range this week.


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