Gold was indicated higher in London morning trade on Thursday, up on the
back of a weak dollar and oil-related buying, a UK-based analyst said.
Spot bullion was bid at $746.55-747.05/oz at 0816 GMT on Thursday
morning, gaining from its late New York spot price at $741.00/oz and from its
Wednesday afternoon fix in London at $741.25/oz.
Bulliondesk.com analyst James Moore said in a morning report Thursday
that the precious metals remained in positive territory "as dollar weakness
and firm oil prices trigger pockets of buying."
He noted that gold had closed just below $740/oz on Wednesday at $739.30
and would continue to track both oil and the dollar in the coming sessions.
"Short-term gold is likely to see further consolidation. However the metal
appears to have established a base above $720/oz and with the market now in
the strongest period for physical demand further weakness will be limited," he
said, adding that Bulliondesk.com expected gold to challenge the $800/oz level
before year-end as investors continued factoring safe-haven assets into their
portfolios, with an initial target of $765/oz.
Moore said the dollar was trading in a firmer mood so far this morning
ahead of Trade gap data for August and Jobless claims for October 6. NYMEX
crude was trading up 15-cents after closing at $81.30, he said.
The euro was indicated at $1.4193 at 0816 GMT on Thursday up slightly
from $1.4165 on Wednesday afternoon. The yen was at Yen 117.29, losing against
the dollar from Yen 117.25 on Wednesday.