(Reuters) – On Monday, gold hits a two-month fresh highs, supported by weak U.S. data that rose the yellow metal’s safe-haven appeal, and additional inflows into the world’s biggest bullion-backed exchange traded fund (ETF).
Gold has increased around 8% in the last nine sessions helped by the weak dollar, short-covering and technical buying.
Marks around rising physical demand and an improvement in the outflows from gold-backed ETFs have as well sustained prices.
SPDR Gold Trust, the world’s largest gold-backed ETF, recorded an increase by 0.4% in holdings last week to reach 915.32 tons.
The London A.M. fix is $1,375.25.
Money managers and hedge funds increased net long positions in gold, reported by the Commodity Futures Trading Commission presented on Friday, demonstrating that investors’ sentiment to gold could be moving.
Spot gold had dropped 0.2% to reach $1,372.91 an ounce by 0726 GMT on profit-taking, after hitting a peak of a two-month of $1,384.10 earlier.
Reuters technical analyst Wang Tao said, spot gold is predicted to break a $1,386 per ounce resistance and increase more reaching $1,403.
On Monday, Shanghai gold futures increased 2%. China and India demand is set to rise to a record 1,000 tons each in 2013, last week the World Gold Council said.
U.S. consumer sentiment retreated in August and residential construction increased lower than estimated last month, possibly lowering hopes of acceleration in economic activity in the third quarter and rising gold’s safe-haven appeal.
Minutes of the Fed’s July policy meeting are due for release on Wednesday.