Gold near 2-1/2 week high on U.S. rate expectations

25-Mar (Reuters) — Gold held near 2-1/2 week highs on Wednesday as upbeat euro zone economic data supported the euro versus the dollar, and as expectations receded that a U.S. interest rate rise is imminent.

The metal’s five-day rally to Tuesday, its longest since January last year, came after Federal Reserve chair Janet Yellen sounded a cautious note last week on the U.S. economy and the pace of any rate hike.

Spot gold was at $1,192.40 an ounce at 1024 GMT, little changed from Tuesday, while U.S. gold futures for April delivery were up 80 cents an ounce at $1,192.20.

“Yellen last week made it clear that the Fed will probably take more time before we see further interest rate hikes. That was clearly supportive for gold, so we weren’t surprised to see prices rising again,” Commerzbank analyst Daniel Briesemann said.

[source]

PG View: Gold is presently engaged in an attempt to regain the $1200 level.