Daily Gold Update

Source: Melanie Lovatt, BridgeNews

London— Spot gold was up $5.30 at $276 (bid) at 1344 BST which is the highest level seen in just two weeks. Gold was given a boost as the dollar slipped from its recent all-time highs against the euro. The dollar's jump versus the euro and other currencies had been the overwhelming force in pushing spot gold close to a one year low this week.

Brokers said that the dollar slipped back amid a chorus of support for central bank intervention to boost the euro and on news that the U.S. could have used its own money in the intervention in support of the euro.

Gold had recently been under pressure from the dollar's strength, as it steamrolled to all-time highs against the euro, so its pullback is now providing gold with some price relief, said brokers. They noted that there are expectations of further intervention, which could continue to knock the dollar off its pedestal and boost the euro, thus giving gold a further upwards shove.

Brokers said that jitters ahead of the Friday U.S. stock market openings could also be helping gold, which typically starts to see better prices amid times of economic uncertainty.

Silver tagged along for the ride and was firmer on the back of gold's rally while platinum and palladium were little-changed from overnight levels.