Gold is having a big day.
The yellow metal is trading around $US1247 an ounce, up $US26 (or 2.1%) on the day. Much of the price appreciation has come since noon in North American trading, as the chart below shows.
BNN reporter Amber Kanwar says there may be a large buyer in the market:
Gold has lost nearly 8 per cent in value since October 28. In that span, it has fallen in 17 of 27 trading sessions.
“Tighter monetary policy in the U.S. and rising rates are hanging over the market and could push gold towards $US1,100/oz in 2014,” wrote BofA Merrill Lynch analysts in a December 2 note to clients. “Yet, while the pause in the bull market may continue, we see several encouraging signs, most notably physical demand from EM, that suggest to us that gold remains a sound medium-term investment.”