Friday in New York the spot gold price moved sharply higher to reach its highest level since early June within shouting of the psychologically important $1,400 an ounce level.
By mid-day the yellow metal was trading not far off its highs at $1,396.80 after gaining as much $27 or just under 2% since yesterday’s close.
Gold futures have now rallied more than 18% from the intra-day low of $1,182.60 an ounce on hit on June 28.
Gold’s fight back from multi-year lows comes on the back of:
It’s perhaps worth highlighting that part of gold’s relative strength of late, and indeed its recent stability has been a lack of activity in ETF holdings. The wave of ETF liquidation seen throughout Q1 and Q2 has come to a halt since mid-August, taking an important source of selling pressure out of the market, while participants have yet to pile back in either as they wait to see how the issue of Fed tapering and indeed the general economic picture unfolds.