Gold Gains 3.5% in a Week

Gold Gains 3.5% in a WeekHighest in the past three weeks, Gold rose by 3.5% this week. Prices of the metal rose for fifth time contagiously in sessions, on Friday. Such moves can lead the US economy back to recession once again.

However, the greater demand for gold in China and India provided the support and hope for recovery. The metal settled down for $1,730.90 an ounce on the day. US gold price showed an upswing by $5 to reach $1,731 mark with the trading volume finished slightly below 250-day average, according to Reuter's data.

The prices rose on Wednesday after Barack Obama was re-elected as the President of United States for next four years to come. The victory boosted the markets uncertainly by end of the week.

"In spite of dollar strength, the market appears to continue to take comfort from Obama's re-election and the implied support this gives to continued monetary accommodation from the Fed", quoted Standard Bank over the issue, in a market note.

Reuters market analyst, Wang Tao is further expecting some more rise in the price of gold to reach $1,749 per ounce after looking at the marketing trends prevailing.

India, the largest buyer of the bullion, is expected to purchase the metal ahead of the Hindu festivals like Dhanteras and Diwali coming next week.

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