Gold rose above $1 100 on Thursday as the dollar fell versus the euro and commodities like oil and metals rose, but trade was cautious ahead of a slew of US data due later this session. "We seem to have found support around $1 100 and $1 090 given background fears about inflation, deflation and debt in the Eurozone. People are still very cautious getting short gold," said James Moore, analyst at TheBullionDesk.com. He added a report on Thursday that China was looking to buy International Monetary Fund gold was had also given gold a boost even though the story was later discredited.
"The China rumours have got people thinking about getting too bearish on gold. China needs to put its reserve money somewhere, they want to increase gold holdings, whether they chose to do so through the IMF we have yet to see." Investors will turn their attention later this session to US economic reports on fourth-quarter gross domestic product, consumer sentiment for February and existing home sales for January, which could set the tone for the dollar. Gold is seen as an alternative asset to the dollar and tends to move in the opposite direction to the US currency.
