Gold Price Reaches 2.5-week High, Settles at $1,197.50

The gold price gained 0.4 percent to reach $1,197.50 an ounce on Wednesday, according to Reuters. Meanwhile, gold futures for April delivery rose by $5.70 to reach $1,197.10.

Earlier in the day, gold reached its highest price since March 6, hitting $1,199.70. The move followed European optimism as the euro climbed against the dollar, and German business confidence swelled, promoting economy recovery of the Eurozone.

“(Gold is) grinding higher as traders are reluctant buyers at this stage … driven by lower bond yields and the current dollar wobble,” said Ole Hansen, head of commodity research for Saxo Bank. “It’s safe to say that the sentiment has returned to neutral. At the moment, many are struggling with the concept of having to turn bullish again considering the rollercoaster it has been through so far this year.”