Gold steadied above $1,300 a tonne on Friday, near its strongest level in five months, after the European Central Bank launched a multi-billion bond-buying programme to invigorate the euro zone economy.
The precious metal, seen as a hedge against inflation, jumped on Thursday after the ECB said it would purchase 60 billion euros ($68 billion) a month until September 2016.
ECB’s bold move also fuelled risk appetite, with Asian stocks stretching a rally in global equities.
Gold may have room to rise further in the near term, said Steel, but to do so it may need to be able to defend $1,300, a level that could discourage some price-sensitive buyers in emerging markets.
Spot gold has risen nearly 10 per cent so far this year, rebounding from a small loss in 2014. It was little changed at $1,300.24 an ounce by 0240 GMT, after hitting a session high of $1,302.50.
The precious metal peaked at $1,306.20 on Thursday, its highest since Aug. 15, and was headed for a third straight weekly gain.
US gold was also steady at $1,300.40 an ounce.
Euro-priced gold was trading at 1,143.15 euros an ounce, after rising as high as 1,150.47 euros overnight, its highest since April 2013.
Still, the global economic uncertainty as well as positive chart patterns should keep gold higher, with $1,320 and $1,350 both “achievable upside targets”, said INTL FCStone analyst Edward Meir.Real Time News & Trading Trends Keep Liking Epic Research Private Limited
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