Gold has opened 2018 on a positive note as the price of the yellow metal soared to its highest in over three months today.
This morning, gold futures increased by 0.31 percent to $1,313.30 after breaking the psychologically significant $1,300 mark last Friday.
In 2017, the precious metal, which is a safe haven asset, benefited from a weaker US dollar.
A research analyst at FXTM, Lukman Otunuga, stated: “With the dollar stumbling into the New Year under renewed selling pressure, gold is likely to remain heavily supported, with prices potentially appreciating towards $1,320 this week.
“From a technical standpoint, the yellow metal is bullish on the daily charts, as there have been consistently higher highs and higher lows.
“With today being the first trading day of 2018 and gold already off to a strong start, it will be interesting to see if the upside momentum elevates the metal beyond $1,320 this month.”
Today, prices of spot gold were up by 0.68 percent at $1,311.72, having risen by 13 percent last year as the US dollar performed its worst since 2003 in 2017.
Meanwhile, information from BullionVault, an online gold platform, revealed gold demand of private investors hitting a 13-month high in December to close 2017 with a bang. The firm said that this was the strongest net demand since November of 2016 when Donald Trump won the presidential election in the United States.
The director of research at BullionVault, Adrian Ash, stated: “For 2018 the key as ever will be what happens to other asset classes. Investor demand for gold is likely to remain muted if the stock market’s bull run continues. The best time to buy insurance, however, is before you need it.”