Gold hits 2-1/2 week high as German data lifts euro
CNBC - Mar 25, 2015
Gold hit 2-1/2 week highs on Wednesday as upbeat German sentiment data and weaker than expected U.S. durable goods numbers drove the euro higher against the dollar and as expectations for an imminent U.S. interest rate rise receded.
The euro was up 0.5 percent versus the U.S. currency after a survey on German business morale fueled expectations that a euro zone economic recovery is strengthening, extending gains after U.S. durable goods data missed expectations.
Spot gold was up 0.3 percent at $1,196 an ounce, having earlier touched its highest since March 6 at $1,199.70. U.S. gold futures for April delivery settled at $1,197 an ounce, up $5.60.
"(Gold is) grinding higher as traders are reluctant buyers at this stage ... driven by lower bond yields and the current dollar wobble,'' Saxo Bank's head of commodity research Ole Hansen said.
"It's safe to say that the sentiment has returned to neutral. At the moment, many are struggling with the concept of having to turn bullish again considering the rollercoaster it has been through so far this year.''
