MarketWatch reports gold futures closed higher Monday, coming to within striking distance of the $1,800 an ounce level, as ongoing concerns over the euro-zone debt crisis and reports that Germany rejected calls to use its gold reserves to help shore up the region’s rescue fund helped boost prices.
Gold for December delivery rose more than 2% earlier in the day to trade at $1,794, a six week high. Bullion is now up almost $200/oz from lows hit at the end of September when it briefly changed hands for less than $1,600/oz.
Reuters reports "German gold" held by the Bundesbank, whose independence is sacrosanct, to further fund bailouts are a source of growing impatience among the German public and politicians.
MarketWatch quotes Brien Lundin, editor of Gold Newsletter: “The reports that German gold reserves will be untouchable in any rescue plan certainly gave gold a big boost today. I don’t believe this was a widely considered risk factor for gold, but the vote of confidence added more momentum to the metal’s recent positive trend.”