Gold climbs higher in early London trade, support seen at $680/oz

London (Platts)--16Apr2007

Gold was indicated higher in morning trade Monday, with Friday's strength
flowing over into Japanese trade and in turn providing impetus for a climb
higher in the London morning.
Spot bullion was at $687.50-688.00/oz at 0846 GMT Monday up from its late
New York spot price on Friday of $684.80/oz and higher still from its London
afternoon fix of $681.75/oz.
Standard Bank London said in a morning report that the outlook for gold
was still biased toward higher prices, and support was expected to hold at the
previous resistance level of $680/oz.
It said the dollar's weakness on Friday had prompted funds to come into
the market with strong bids. "The strength continued at the start of this week
as Japanese early selling turned into strong short-covering that rallied
prices to near $688 levels," the bank said, adding that with gold finally
succeeding in breaking the $682/oz resistance after multiple attempts, the
next target would be to test the $689/690/oz resistance level. Standard said a
break of this would next look to $700/oz.
Bulliondesk.com analyst James Moore said given the bearish dollar
sentiment and the breach of chart resistance last week, gold was looking set
for another week of solid gains.
Meanwhile in the currency markets, the euro was at $1.3547 at 0847 GMT,
up slightly from $1.3520 at 1600 GMT on Friday, while the yen was at Yen
119.54, dipping off against the dollar from Yen 119.20 on Friday afternoon.