China, the host of the globe's second-largest economy and one of the world's two top consumers of the precious metal, saw sales of the haven asset triple this past Monday and Tuesday, according to data released by the China Gold Association. Demand in India, the other top buyer of the precious metal, pushed to its top level this year, data from the All India Gems & Jewelry Trade Federation indicates.
The yellowish metal also benefited from data released by the U.S. Federal Reserve in Philadelphia, which noted that manufacturing is growing in that metropolis' region this month yet not as rapidly as forecast.
"Physical demand continues to remain strong," senior commodity broker Phil Streible with R.J. O'Brien & Associates told the news source on Thursday. "Some investors are buying gold as economic numbers have been a disappointment."
At 11:34 a.m. on Thursday, gold futures rose 0.93 percent, a $14.40 rise to $1,395.60 per troy ounce.
Broker advises investment now opportune
Senior broker Kurt Pfafflin with Daniel's Trading said the precious metal is among a key point in time. He acknowledged gold is within a bear market after having lost about 22 percent since notching record prices in September 2011.
Yet he said now is the opportune time to capitalize on the low prices of gold.
"If you're bullish and trading futures from the long side, you simply cannot withstand these types of moves against you unless you are ridiculously well-capitalized," according to the senior broker. "This waterfall bloodbath spike lower has a truly unique way of quickly and violently separating leveraged long traders from their money."
The record price for gold futures is $1,923.70 per troy ounce as established on September 7, 2011.
Cyprus' troubles spur spurt
Reuters reports the stronger performance of gold on Thursday is correlated with activity to benefit debt-hobbled Cyprus, a euro zone nation approved for bailout aid as a salve to its beleaguered banks, markets and public finance systems.
"The downward momentum has stabilized over yesterday and today, but we can't say for sure if that's abated or we will see more financial investors leaving the gold market and volatility is likely to remain very high in the next few sessions," analyst Daniel Briesemann with Commerzbank told Reuters on Thursday. "The current support comes from exceptionally higher retail demand for coins and bars in all major markets including Asia, the United States and Europe."
Another investment signal
MarketWatch reports the recent losses of the precious metal have done their part to spur interest in purchases.
Losses on Wednesday marked the third bearish performance in four trading sessions, and one industry insider said activity in pursuit of the yellowish metal presently is climbing.
"We are hearing of huge jumps in premiums for all gold products at the street level, so there is a sense that the downdraft for gold futures has overrun the rear physical metal market in a big way," editor Gene Arensberg with the Got Gold Report told MarketWatch on Thursday. "High premiums mean supply is drying up and it is just a question of time before that shows up in the paper gold markets. The gold market is nothing if not efficient given enough time."
The performance of the U.S. dollar on Thursday also benefited the price of gold. The world's reserve currency was waning, which typically prompts the price of gold to rise as the two perform the inverse of one-another.
Credit Agricole said the yellowish metal is forecast to demonstrate a bearish performance during the next several trade sessions through the medium term, according to MarketWatch.
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