Price of gold came up after two weeks of decline to trade for USD 11,711 per ounce compared to last Tuesday's USD 1,663 per ounce, said Al-Zummorroda company's latest report.
The report attributed the rise to anticipation over euro zone and Asia financial data, particularly in view of the weakness of the euro against the US dollar and anticipation of a drop in Chinese domestic product for the year. With the start of release of positive data in Europe, and agreement among Greece's creditors, price went up again and quickly crossed the USD 1,690 mark per ounce.
Despite the drops, the market was dominated by demand which continued to sustain price against too sharp a drop, and last hour demanded gave the price the final push towards today's price, the report pointed out.
The report forecast further gains next week amid continues unease and low appetite for risk in the market, and said prices could reach USD 1,760 and USD 1,800 per ounce soon after.
The report also pointed out the current price situation is not the norm, when it comes to the relationship between price of gold and rate of the US dollar. This is because a whole set of other factors are influencing the gold market.
As for silver, the report noted its price changes were even sharper than those of other precious metals, dropping to USD 32.5 before climbing to USD 34.
2. Demand for silver is expected to continue to push price up and the report forecasts the range of USD 37 per ounce within a few days.
Platinum came up USD 12 to 1,683 per ounce, while palladium came to USD 707 per ounce.
The local gold market saw a revival with the drop in price with 24 carat reaching KD 14.9 per ounce for the first time since February and demand increased for small bullions and liras. Drop in price of silver brought on a similar increase in sales.
Pure gold reached KD 14,900 per kilo while pure silver is now selling for KD 300 per kilo.