Gold News

Gold holds to $800 as investors sulk

Gold has again pegged itself to the $800 mark, falling around two per cent this morning, (December 12th) before finding bargain-seeking bullion buyers to support its rise back up.

Spot gold now looks unlikely to stage another big rally before the year end with slower activity anticipated, and today's trade saw the metal slip to an intraday low of $796.70 per ounce before finding the support to drive it back up above $805.

Despite bargain-seekers buoying its price, investors were left disappointed and less inclined to buy gold as the Federal rate cut announced yesterday stopped short of the major slash demanded by many, offering only a quarter point drop.

But experts were clear that gold demand could be triggered by any further weakening in the dollar's position, with another rate cut not necessarily required in order to send the greenback down and bullion back up.

David Moore, a commodity analyst at the Commonwealth Bank of Australia, told Reuters: "If the US dollar comes under downward pressure in coming weeks, you could see the gold price spike higher. Probably quite sharply higher, back above $820 an ounce."

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