Gold futures declined slightly on Thursday, but still held close to its five-week high.
According to Binary Tribune, Comex gold for delivery in December traded 0.55 percent lower at $1,237.9 per troy ounce at 13:26 GMT. Prices held in a daily range between $1,245.6, close to yesterday's five-week high of $1,250.3 per ounce and the day's low of $1,235.2. The contract rose by 0.85 percent to $1,244.8 on Wednesday, its third straight daily advance.
Gold reached its five-week high on Wednesday as investors went after safe havens amid talk of a global economic slowdown. Analysts believe the continued strength of the U.S. dollar may be what is keeping gold prices on a leash, preventing them from climbing too high.
MarketWatch reported another factor that may be keeping gold prices close to that five-week high is the glut in demand from India ahead of this month's religious festivals. Indian trade data from September showed gold imports soared by 450 percent year-over-year to $3.75 billion. Analysts pointed out that it seems Indian consumers are not opposed to buying the precious metal in vast quantities, even at higher prices.
"If this should turn into a trend, it would doubtless lend support to the gold price," wrote strategists from Commerzbank in a note.
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