• Gold has risen as the US dollar has weakened following a 10-day winning streak and investors take the opportunity to buy bullion as a hedge against political uncertainty in the United States and Europe.
• The most active gold contract for March delivery rose 8.5 U.S. dollars, or 0.69 percent, to settle at1,241.60 dollars per ounce.
• Gold was given extensive support as the U.S. Dollar Index fell by 0.59 percent to 100.49 as of 1815 GMT.
• Concern over US President Donald Trump's policies, as well as elections in the Netherlands, France and Germany this year, have fuelled gold's rise to a peak of $US1,244.67 on February 8.
• "It's a tug of war between a higher probability of a US rate hike in March and upcoming elections around Europe, which are creating uncertainty and demand for safe assets," said Jens Pedersen at Danske Bank.
• "As I see it, a relatively small group of hedge funds and institutional speculators have been calling the tune for gold, trading the recent range, buying on dips, selling on rallies, and gradually adding to their physical holdings - a behavioural pattern we expect will continue within a rising trading range - at least until a price above the $US1,300 an ounce level is well established," said Jeffrey Nichols, senior economic adviser to Rosland Capital.
• Gold's gains were capped as a report released by the U.S. Department of Commerce on Thursday showed housing starts reaching 1.246 million starts, which was better than expected, and permits at a one-year-high, at 1.285 million permits, which was also better than expected. Analysts note that year-on-year improvement is significant as well.
• The precious metal was put under further pressure as report released by the U.S. Department of Labor on Thursday showed initial jobless claims increasing by a much better-than-expected 5,000 to a 239,000 level during the week of February 11th. Analysts note that both of these figures are exceptionally strong.
• Gold was put under extensive pressure as the Philadelphia Fed Business Outlook Survey jumped to 43.3as of 18:15 GMT, showing the strongest reading of the measure since January 1984. Analysts note that new orders increased by 12 points to 38.
• Silver for March delivery rose 11.1 cents, or 0.62 percent, to close at 18.074 dollars per ounce.
Reference: Xinhua, Business News
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