Gold rose for a fourth consecutive day yesterday on renewed interest in the metal by investors
Gold rose for a fourth consecutive day yesterday on renewed interest in the metal by investors, Resource Investor reported.
Analysts expect interest in the metal to remain strong, on the back of expected supply constraints and as investors seek bullion as a hedge against the possibility of rising inflation.
Gold for February delivery closed up $4.90 at $510.10 an ounce yesterday on the New York Mercantile Exchange.
?Gold is supported by strong jewellery demand, and fund buying as a hedge against the relatively strong oil price, which has led to rising energy costs,? a Johannesburg-based equities dealer said yesterday.
Following the aggressive profit taking in the prior week, in which the gold price fell about 3%, the gold price has rebounded, despite the thin market as a result of less robust trade.
Traders said a pick-up in trade in the new year was likely, when normal trading resumed.