Gold futures rallied past $1,200 an ounce on Thursday
Bullion prices ended closes to 1% higher on Thursday, 26 March 2015 at Comex. Gold futures rallied past $1,200 an ounce on Thursday to settle at their highest level since early March as investors backed away from riskier assets amid a selloff for global equities and increased tension in the Middle East.
Gold for April delivery climbed $7.80, or 0.7%, to settle at $1,204.80 an ounce on Comex. Prices have now climbed for seven sessions in a row, tallying a total gain of 4.9% during their streak of gains.
May silver added 14 cents, or 0.8%, to end at $17.14 an ounce.
A rebound in the U.S. dollar index and the U.S. stock market during the U.S. trading session on Thursday did help to pare stronger early gains seen in gold.
Saudi Arabia and its allies' air strikes against Iran-backed rebels in Yemen have produced fresh geopolitical tension. Saudi Arabia and Iran, the two major Middle East powers, are now in a stare-down. Crude oil prices rallied sharply to a two-week high above $52.00 a barrel on the news, while safe-haven gold also posted decent gains.
Reports overnight said China has moved to allow more companies to import gold into China, which will effectively reduce the premium China's domestic gold-buyers have had to pay over the world price. The move by Chinese authorities should give a modest boost to gold demand coming from China. The World Gold Council said Chinese demand for imported gold is likely to rise by 11% this year.
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