Gold Gets Solid Support

Gold prices hit a year-and-a-half high Tuesday as the metal continued to rise in response to the announcement on Sunday that European central banks will limit their gold sales over the next five years.

Gold for delivery in December settled up $26.20, or 9.2 percent, at $310 per ounce after hitting a one-and-a-half-year high of $329.

Leonard Kaplan, chief bullion dealer at LFG Bullion Services, said buying came from all sides, such as “retail, hedge funds, and banks.” He predicted that the move is “not yet over” and pointed out that gold had stormed through “every resistance level.”

Analysts said the current rally could be sustainable as so far there has been no evidence of gold producers selling into the rally.