Prices of gold kept constant around the highs it had recently hit in the earlier session. Gold prices remained constant because of the demand by investors and a weak Dollar due to prevailing doubts about the world economy.

Gold in XAU underwent minute difference and was at $1,268.75 per ounce by 10:05A.M GMT. It had earlier reached $1,274.75 per ounce, a jump by 2%. It was also the biggest gain by it, in the past four months.

According to Eugen Weinberg, Analyst, Commerzbank, the investment demand for gold had increased. He further added that he won’t be surprised if the price of gold surpassed $1,300, though it would not be on fundamental demand and would rather weigh on technicalities.

According to the research done by the analyst, gold support continues to be at $1,250 and silver support is at $20.00. The resistance shown by gold is at $1,280 and for silver is at $20.60.

Mr. Weinberg further added that the release of data on Wednesday regarding industrial production would further move gold prices.

It has been predicted that gold is likely to achieve a rise of 16% in the bullion markets in the year 2010. The rise in prices of gold has pre-dominantly been stated to be due to the uncertainty in investors.