Price of gold remains firm as strong physical buying from China boosts outlook

The price of gold futures remains firm in trading today as strong physical buying from China boosts the outlook for the precious metal to add on further ground as big gains were curbed by a weaker euro, profit taking and gloomy world stock markets.

Latest Gold Price

Gold for February delivery added $8.10 at $1,639.60 an ounce at the Comex division of the NYMEX. The gold price has traded as high as $1,648 and as low as $1,630.80 an ounce while the gold spot price was up $6, according to Kitco’s gold index.

“Some people will sell into strength as gold moved above the 200 day moving average,” a key technical level, says Will Rhind, head of US operations for ETF Securities.

Rhind thinks that some more negative news out of Europe will help gold as investors buy it as a safe haven. “What we’re seeing right now is that emergence of that store of value, that safe haven trade.”

China Buys Gold

Evidence of strong buying from China was propping up gold prices today. China imported a record 103 tons of gold from Hong Kong in November, up 19 percent month on month and a 483 percent increase year on year, according to Goldcore, a bullion dealer.

“As Chinese people’s disposable incomes gain and concerns grow over inflation and equity and property markets, Chinese consumers and investors are turning to gold as a long term investment hedge,” says Goldcore in a recent note.

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Price of gold remains firm as strong physical buying from China boosts outlook