NEW YORK (Commodity Online): Will gold prices hit $1,200 per ounce this month? If you go by the opinion of bullion market analysts, the yellow metal may cross $1,200 mark this month as the bull run in bullion has lreay started.
In January, the yellow metal had crossed $1,160 per ounce. And analysts now say that this will go beyond $1,200 this month.
Reason for this is the fluctuation in gold prices. Dollar fluctuated between gains and losses against a six-currency index last week.
Gold gained 1.5 per cent last week in New York market. Gold has entered a rally, as its price has steadily risen from $1,043.75 on February 5.
The price of the metal has already broken its five-, ten- and 20-day moving averages.
Analysts said prospects of gold price falling are slim, given the euro is expected to rise. Gold is in good shape when the euro is strong or the dollar is weak.
Last week gold gained nearly $20 on monetary tightening spree in Asian countries. The international gold futures bottomed out from near 3 month lows of around $1045 levels in early February and have rallied by over $100 to near $1160 per ounce levels.
The factor that may hinder rally in metal is expected rise in the US dollar next week in the afterglow of a better than expected non farm payrolls data and as Euro continues to struggle on ongoing concerns about Greek fiscal problems.
On the economic front this week there are some top-tier economic releases that could buffet foreign exchange investors. US wholesale inventories for January will be released on Wednesday, with a consensus estimate for a 0.2% rise.
The federal budget for February will be released later that day.