BENGALURU, Oct 16 (Reuters): Gold rose on Tuesday as investors unwound some bearish positions after prices jumped to a 2-1/2-month high in the previous session, driven by a global equities sell-off.
Spot gold was up 0.2 per cent at $1,229.34 an ounce by 1109 GMT, having peaked on Monday at $1,233.26, its highest since July 26.
US gold futures were up 0.2 per cent at $1,232.70.
"Gold is still holding the gains, very close to the 100-day moving average. A close above that level could be a positive sign and provoke more short-covering and push prices higher," said Commerzbank analyst Carsten Fritsch.
Speculators who trade on technical signals regard a break above the 100-day moving average as a bullish sign.
Data last week showed that speculators had increased their short positions and traders said the recent rally forced many to abandon those bets on lower prices.
Gold price holds gains
FE Team | Published: October 16, 2018 22:29:33
Gold price holds gains
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