Gold recovered to $1250 per ounce
Gold extended the upside for 4 consecutive weeks in a row, recovering from the Dec. 31 low of $1180 to $1260 per troy ounce. Bullion price rose on signs of increased demand in China and as holdings in gold-backed funds rose the most in more than a year on Jan. 17.
“Strong demand from China continues to offer support, but the strength of this buying is unlikely to last much beyond the Lunar New Year (Jan. 31)”, Barclays analysts say. “We continue to expect the Fed to keep tapering asset purchases at a measured pace and the US dollar to strengthen in the medium term.”
Chart. Daily XAU/USD