Gold keeps rising on physical demand

Gold futures on the COMEX division of the New York Mercantile Exchange Friday kept rising for the eighth session in a row and ended the week with a gain of 4.4 percent. The most active gold contract for April delivery rose 18.5 dollars, or 1.42 percent, to settle at 1,318.6 dollars per ounce. Strong physical demand from China gave a boost to gold. Market is also expecting an eventual easing of the import ban in India. Gold also found certain support when the University of Michigan and Thomson Reuters put February consumer sentiment unchanged at a preliminary reading of 81.2. Gold prices have so far gained 9.7 percent this year, and held ground above the psychological level of 1,300 dollars per ounce. As a result, some market analysts forecast that gold may expect further gains in 2014. But there are also market analysts holding that gold will soon fall back as the resistance of 1,327 dollars and 1,355 dollars are posing a threat for the price. They don't think the growth of gold prices is sustainable. Silver for March delivery gained 1.026 dollars, or 5.03 percent, to close at 21.421 dollars per ounce. Platinum for April delivery climbed 13.5 dollars, or 0.95 percent, to close at 1,430.1 dollars per ounce.