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Spot gold prices traded flat on Wednesday, hovering near a record high hit in the previous session, as investors bought dollars and the doubts about a prolonged global economic balance.
Gold Flat, Visible Record Equipment

A clerk stands behind a gold necklace jewelry on display at the show in Agartala, capital of northeast Indian state of Tripura, August 18, 2010.

Thin spot gold price changed at $ 1,269.75 an ounce at 1155 GMT (7:55 EDT), after surging more than 2 percent to reach a record $ 1,274.75 an ounce in the previous session, is the biggest one-day gain in four months. U.S. gold futures for December delivery was unchanged at U.S. $ 1,271.50 thin.

“Investment demand has increased,” said Eugen Weinberg, analyst at Commerzbank. “I would not be surprised if gold to U.S. $ 1,300 because it will not happen to every demand fundamentals, but rather on a technical point.

“I can not set it, considering the situation of positive graphs and relatively strong demand from investors.”

According to research analysts, support gold was at U.S. $ 1,250 and resistance at U.S. $ 1,280, while support silver at U.S. $ 20.00 and resistance at U.S. $ 20.60.

Weinberg also said U.S. industrial production data due at 1315 GMT (9:15 EDT) on Wednesday that will move the price of precious metals.

Now that gold bullion is on track to rise about 16 percent in 2010, largely driven by investor anxiety after the fall of the euro zone debt crisis and concerns about the pace of global economic recovery.