Gold and silver heading for fourth week of gains as rally continues
Precious metals prices are heading for a fourth week of gains following the Federal Reserve's pledge to keep interest rates near zero for some time. Although gold investors were relieved by the Fed's move to keep rates historically low, they will now turn their attention again to the outcome of the Greek debt crisis, with U.S. funds still cautious about lending to banks in the troubled euro zone.
A Reuters poll showed gold's record-breaking rally of the last decade is set to extend into this year and the next as monetary policy stays loose and central banks build reserves.
Gold hit a high around $1,723 an ounce before slipping to $1,717.40 by 0258 GMT, down $2.64. Gold rallied to$1,729.76 on Thursday, its strongest since early December, but was still well below a record around $1,920 hit last September. Prices were on track for a more than 3 percent rise this week."Some of the key data that market participants could be focusing on will be the first reading of the Q4 U.S. GDP. I think a positive reading in general will be good for risk assets and gold as well," said Ong Yi Ling, an analyst at Phillip Futures in Singapore. "I am actually looking for the next resistance level at about the $1,800 level," said Ong, adding that gold was prone to profit taking after recent gains.
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