A haven from risk and back with a shine. Gold retreated slightly on Monday – spot gold XAU was down 0.3 percent at one thousand two hundred and seventy six dollars and ten cents an ounce, but prices generally remained near four-month highs.
A market rout after Switzerland unexpectedly abandoned a cap on the franc last week triggered strong bids for gold which is often seen as an alternative to risky assets.
“Gold is going the right way to reach one thousand three hundred dollars and if we can reach that we can go much higher,” said one analyst.
The market is braced for further volatility in a critical week for the eurozone traders have predicted.