Gold prices opened at $1,204.19 on Monday and jumped to $1,215.97 on Tuesday. Mid-week profit taking caused some volatility, sending gold prices slightly back before they regained momentum to close at $1,215.53 on Wednesday.

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Heavy trading due to short sellers covering exposed positions in light of the bullish gold buying sent prices on a bit of a rollercoaster on Thursday and Friday. However, the week ended up with a solid gain to $1,212.96. It is worth noting the trading after the U.S. market closed continued on an upward trend.

The fact that gold broke through and stayed above the psychologically important $1,200 per ounce level all week received a lot of attention from technical traders. While a weakening dollar boosted interest in safe haven assets like gold, the overall momentum seemed to be based on a continued lessening of the post-U.S. election economic optimism.

The agenda for government economic announcements and reports is light for this week. Market participants are, however, speculating over the outcome of the Federal Open Market Committee meeting scheduled for January 31. 1 As gold investors well know, the last meeting resulted in interest rate hikes and talk of further increases to come. 2 Higher interest rates is a factor that influences gold prices and creates an opportunity to buy gold.

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