Demand by investors capitalizing on four consecutive days of losses to gold futures by purchasing the precious metal helped halt those losses and drive its price higher on Thursday, Reuters reports.
Following the yellowish metal's plunge to its lowest price in more than four months on Wednesday, traders aiming to benefit from those low prices by purchasing gold helped drive the price higher. However, the sovereign debt crisis continues pressuring the euro zone and Greece's political situation perilously remains in limbo, as does its ability to meet financial obligations.
"Investors are currently trading cautiously and we expect gold to be range trading. For now, it's probably between $1,500 and $1,550." analyst Lynette Tan with Phillip Futures in Singapore told Reuters.
At 9:48 a.m. on Thursday, gold futures rose 0.92 percent, a $14.10 advance to $1,550.70 per troy ounce.
Despite the rough period for the yellowish metal as of late, bullion ultimately will surpass the milestone price of $2,000 per troy ounce, strategy advisor Don Coxe with BMO Financial Group said as cited by Mining Weekly. What will spur a gold rally is an immense amount of monetization from central banks, he said.
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