Dhaka, Bangladesh (BBN) – U.S. gold futures for December delivery settled up USD 23.20 an ounce and Spot Gold rose more than 1 percent to USD 1,639.19 an ounce on Friday, which broke a four-day losing streak, as gold moved with riskier assets on optimism of the Euro debt crisis talk.
The trend accelerated on Monday, as commodity prices edged higher on news of China’s manufacturing sector to have grown considerably in October, added to the optimism, a weekly market update said.
Gold prices gained around 1 percent while Silver was up by 1.1 percent to USD31.68 an ounce. As euro zone jitters and gloomy U.S. consumer data eventually renewed demand for the dormant safe-haven, gold rose above 3 percent to one of the biggest one-day rallies in years on Tuesday, and by further 1 percent on Wednesday.
Bullion prices rose above 1,700 an ounce amid uncertainty toward the outcome to a key EU summit.
On the other hand, Brent pulled back on Friday to a weekly loss after two straight weekly gains, as investors became cautious ahead of meetings of European leaders.
On Monday, data showing China’s manufacturing sector expanded in October, led U.S. crude to reach two month highs, up by 4 percent, while Brent was up only 1.7 percent, as volatile trade in key spreads stole the limelight from upbeat Chinese data and optimism over the summit.
On Tuesday, US oil prices shot to a 12-week high in a second day of frenetic spread trading, as dealers gave in to evidence of tightening supplies.
However oil prices fell on Wednesday as concerns about rising U.S. inventories added to caution about Europe’s ability to agree on a plan to address the debt crisis, the update added.
BBN/SSR/AD-29Oct11-4:01 pm (BST)