The price of gold rose by a significant margin as a resurgence of the euro versus the dollar, bringing the value of the metal past a 200-day moving average, according to Reuters.
Bloomberg reported that gold reached its highest price in almost three weeks due to speculation concerning an increase in physical demand for the metal. Coupled with the rise of the euro, the move by traders to the commodity pushed the value higher during trading.
According to the news outlet, the U.S. Mint sold 79,000 ounces of gold to date for the month of January, topping the total sales for the metal that were recorded during December.
“Physical investment and jewelry demand has been strong into price falls below $1,650, with Chinese buyers particularly active,” Nick Moore, an analyst at Royal Bank of Scotland Group Plc, told Bloomberg. He noted that demand from China “is likely to increase this month irrespective of price, in the run-up to the Chinese New Year Holiday.”
The price of gold for February delivery rose $24.40 to $1,632.50 an ounce, marking an increase of 1.52 percent, according to CNN.