Gold price continues recovery

October 7, 2014

Frankfurt (Oct 7)  Gold prices in Europe rose on Tuesday, continuing its recovery from Friday's dip on the back of strong US nonfarm payrolls data.

Spot gold was trading at $US1,209.92 a troy ounce, up 0.3 per cent, in morning European trade.

The yellow metal was boosted by finding its floor at the major support level of $US1,182.52.

"We have repeatedly said that a V-shaped rebound in gold would suggest sentiment has changed as buyers are prepared to chase the market higher; we wait to see if the rebound has legs -- we think it should, but would not count on it," said William Adams, an analyst at Fastmarkets.

Looking ahead, market participants are awaiting the release of the US Federal Reserve's Open Market Committee meeting statement tomorrow.

All the precious metals were back in the black. Silver was up 0.02 per cent at $US17.324 an ounce, platinum was up 1.7 per cent per cent at $US1,261.00 an ounce, and palladium was up 0.5 per cent at $US768.25 an ounce.


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