Around 10:54 a.m. EST (1554 GMT), lightly traded but nearby January gold is $20 higher at $1,158.20 an ounce on the Comex division of the New York Mercantile Exchange, while most-active February climbed $20.10 to $1,159 and peaked overnight at $1,163, its most muscular level since Dec. 8.

“It’s about the dollar and the very strong Chinese trade data,” said Frank Lesh, broker and futures analyst with FuturePath Trading.

The euro has been as high as $1.4558 against the dollar, its strongest level since Dec. 16 and up more than 1 cent compared to $1.4414 late Friday. Investors often buy gold as a hedge against dollar weakness. Furthermore, a softer greenback makes all dollar-denominated commodities cheaper in other currencies and thus can help demand.

The dollar remains undercut by a softer-than-forecast U.S. jobs report Friday.

“We have dollar weakness because the employment data pushed any thoughts of any [Federal Reserve] rate hikes out further,” Lesh said. “So we lost some dollar support and that, of course, is supportive for gold.”

Currency analysts also said a 17.7% rise in Chinese exports last month added to the pressure on the dollar.

“We also had very strong Chinese import data,” Lesh said. “That shows, as of right now, the appetite for commodities remains pretty strong.”

China’s imports rose nearly 56% last month. This improved demand picture has helped a number of commodities, Lesh continued.

Gold took off at “warp speed” as soon as overnight screen trading began late Sunday, said Jon Nadler, senior analyst with Kitco Metals. The report showing what he termed a “commodities shopping spree” in China triggered a return of risk appetite.

The overnight surge in gold was accelerated by buy stops, or pre-placed orders triggered when certain chart points are hit, said Matthias Detremmerie, founder and precious metals analyst at Goldessential.com. In fact, he said, when electronic trading opened Sunday night, it took only seconds for the market to break above Friday’s high of $1,140 in February gold and more buy stops were hit around $1,143.50.

Short covering was triggered, in which traders buy to exit positions in which they previously sold, Detremmerie continued.

Most-active March silver is up 32 cents to $18.79 an ounce and hit a high of $18.925 that was its strongest level since Dec. 4.

Meanwhile, April platinum is up $24.90 to $1,595.50 an ounce and hit a life-of-contract high of $1,596.20, while March palladium is up $5.85 to $431.

The MOU was signed at a ceremony in Jaipur by C. Vinod Hayagriv, Chairman of the All India Gems & Jewellery Trade Federation and Mr. Eli Avidar, IDI Managing Director.

The MOU states that the two parties share the desire to promote positive relations between the Indian Gems & Jewellers Industry and the Israeli Diamond Industry, and to enhance areas of cooperation between them, as well as to intensify the dialogue concerning issues of mutual interest via collaboration between the parties.

The MOU calls for:
- An examination of joint interests to safeguard the industry;
- An ongoing exchange of information for the benefit of the members of both organizations;
- An annual meeting to examine and plan subjects on the agenda;
- A joint educational effort.

In addition, the parties will determine by mutual consent the level, agenda, time and place of consultations and other forms of cooperation. Moreover both parties will grant each other honorary membership in all functions and events taking place under the auspices of the two organizations.

The All India Gems & Jewellery Trade Federation is a national trade federation for the promotion and growth of trade in gems and jewellery across India. The Federation unites manufacturers, wholesalers, retailers and exporters all over India.

GJF Chairman C. Vinod Hayagriv said: “This marks a new, unexplored and exciting opportunity for Israel and India to seek each others strengths to widen their markets. The direct access will help businesses of both countries immensely as this partnership will help businesses of varying sizes to come together for a common purpose of commerce. Also envisaged is education and knowledge transfer between India and Israel”.

IDI Chairman Moti Ganz said: “This is an extremely important moment in the relations between the Israeli and Indian diamond and jewelry industries. We truly believe that we have a common interest and through partnership we will be able to benefit our members. The MOU is just the foundation for the joint projects yet to come.”

This is the second MOU that IDI has signed with India in the past four weeks. The first MOU was signed in November with the Gem and Jewellery Export Promotion Council of India (GJEPC).