Spot gold was 0.3% higher at $2,335.70 per ounce, after reaching a record high of $2,353.79 earlier in the session
Gold prices gained on Monday to hit a record high for the seventh successive session, a move that analysts anticipate could be driven by strong official sector demand from Asia, despite traditional headwinds from a stronger U.S. dollar and higher interest rates.
Spot gold was 0.3% higher at $2,335.70 per ounce as of 1002 GMT, after reaching a record high of $2,353.79 earlier in the session. U.S. gold futures added 0.4% to $2,354.70.
Gold bulls may have taken their latest cues from the People’s Bank of China (PBoC), which extended its buying spree of the precious metal for a 17th consecutive month in March, according to Han Tan, chief market analyst at Exinity Group.
With the PBoC as well as the Reserve Bank of India (RBI) soaking up bullion to buffer their respective reserves, this massive buying spree by global central banks is certainly fuelling spot gold’s price surge, he added.
Bullion has added more than 13% this year, despite headwinds from strong U.S. economic data, and bets that rate cut could be delayed beyond June.
There are only two buyers in my book that would have that kind of attitude towards gold. One could be program buying by a central bank. The other alternative, impervious to market fundamentals, is option buying, according to independent analyst Ross Norman.
UBS raised its year-end target for bullion to $2,250 per ounce, in view of stronger demand and with a pickup in ETF buying likely ahead.
Meanwhile, non-official physical gold demand in India remained weak last week as a strong rally in domestic prices put off buyers in the price-sensitive region, while premiums held firm in top consumer China.
