Gold hit its highest in a month on Monday as a retreat in the dollar pushed prices through tough resistance at $1,300 US an ounce and as fears abated that the U.S. Federal Reserve will soon curb monetary easing.
Fed chairman Ben Bernanke’s assurances last week that any withdrawal of U.S. quantitative easing, a major driver of gold prices in recent years, would depend on economic conditions had already prompted a second week of gains in gold and continued to underpin the market on Monday.
Analysts said, however, that with an end to QE still in sight, its rally is likely to be muted.
There are not many reasons to a rally in the price of gold,it is too soon to say that the price of gold has changed its trend, a weak dollar index today and some short covering rally should have underpinned the price of gold today.
Source: Reuters
