Gold rose to a one-week high on Thursday amid a weaker dollar, on increased demand from Chinese retail investors and as the market waited for the announcement of a new chair of the US Federal Reserve, expected later in the day. Spot gold was up 0.3 percent at $1,278.10 per ounce at 0617 GMT, after earlier rising to $1,281.43, the highest since Oct. 26.
US gold futures edged up 0.1 percent to $1,278.80 per ounce. "The return of Chinese investor interest in gold at these levels is a welcome vote of confidence for long-suffering gold bulls," said Jeffrey Halley, a senior market analyst with OANDA. Higher demand from Chinese retail buyers has raised domestic bullion prices and global prices have risen to narrow the gap, he said. Spot gold may break a resistance at $1,283 per ounce, and rise into a range of $1,289 to $1,295, said Reuters technical analyst Wang Tao.
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