Gold futures extended gains for a fourth consecutive session today to settle at its largest lead in more than two-and-a-half months as Chinese buyers come again to the market after the most recently celebrated Lunar New Year holiday.
Meanwhile gold traders are also bidding prices relatively much higher ahead of this week’s testimony from the Federal Reserve Chairwoman Janet Yellen with regards to its monetary policy.
Gold for April delivery was able to rally 0.9 % which remained relatively stable at $1,274.70 an ounce as recorded on the Comex division of the New York Mercantile Exchange respectively. In the spot market, the yellow metal was being traded at $1275 an ounce which was regarded as not so much of a breather for most active traders in the market.
For the Australian gold producers along with gold explorers, with the Australian dollar being purchased at $0.89, is easily translatable into $1,432 Australian dollar an ounce which should generally provide in filling the vacated valuations if ever the price should hold its ground.
The Chinese Gold Association earlier in a disclosed statement said that the nation’s wide demand soared up to as high as 41 % to a record of 1,176.4 metric tons last year. Furthermore, the Chinese market will most likely overtake India as the global leader in consumer metal last year according to speculations by the World Gold Council as indicative of the Chinese rising demand for the said precious metal.