The price of gold began to rise when markets opened today, as the value of the metal increased against the dollar due to hopes that Europe will make some progress on its debt debacle, The Street reported.
According to the news outlet, the price of gold for December delivery, the most actively traded contract, rose $4.70 to $1,715.50 an ounce.
This increase in price continued the metal’s climb skywards, as gold experienced a “monster rally” at the beginning of the week. It rose 1.5 percent because of strong stock data coming out of the U.S., possibly influenced by Black Friday sales.
“Further pockets of bargain hunting and safe-haven related buying will help support the gold in the coming sessions,” James Moore, research analyst at FastMarkets.com, told The Street. “But as a whole we expect the recent trend of mixed volatile trade to continue with the metals vulnerable to further bouts of cash generating related long liquidation.”
Reuters reported that the price of gold has risen by more than 20 percent in 2011 to date, putting the metal well on its way toward the 11th consecutive yearly gain for the commodity.