Author: By Amanda Cooper (Reuters)
Posted: Wednesday , 11 Jan 2012
Gold's break to a one-month high of $1,646.90/oz has given investors more confidence to buy the metal and evidence of strong demand from major consuming nations further supported the market.
LONDON (Reuters) -
Gold rallied for a second day on Wednesday, hitting its highest in a month after a stronger euro helped boost the price above a key technical level and evidence of strong demand from major consuming nations further supported the market.
Gold has risen by 1.5 percent so far this week, in line with a modest pick-up in the euro, which is battling against fresh concerns about the ability of several euro zone nations to fund themselves given sovereign debt yields remain high and there is no immediate solution in sight to the crisis.
The gold price vaulted above the 200-day moving average around $1,635 an ounce on Tuesday, which prior to December's sell-off had marked an important level of support, but since then has acted as stiff overhead resistance.
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