Monday, November 28, 2011

Gold punches back above $1700 and Silver $32

(Reuters) - Gold jumped above $1,700 an ounce on Monday due to early gains in the euro and hopes that Europe will take bolder steps to resolve a crippling debt crisis, while a recovery in equities also prompted buying from a few investors.

Gold held on to its 1 percent gain even after the International Monetary Fund said it was not in discussions with Italian authorities on a financing plan, dousing speculation that it was preparing an aid package.

Spot gold added $25.44 an ounce to $1,704.59 an ounce by 0710 GMT -- its biggest daily gain in more than 2 weeks. Gold was still below a lifetime high of around $1,920 touched in September.

Sentiment has improved, said Dick Poon, manager of precious metals at Heraeus in Hong Kong, but the outlook for bullion depends on how Europe resolves the debt crisis and the economic situation in the United on

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