Gold Approaches Highest Level of 2012

An increase in risk taking due to speculations regarding a possible new bailout package for Spain caused the price of gold to shoot up above $1787 an ounce, close to its highest point this year. The precious metal was not able to maintain its gains though, and proceeded to stage a downward correction during the evening session before closing out the day at $1772.93. This week, gold traders will want to keep an eye on a series of potentially significant news events out of the US which have the potential to generate volatility in the marketplace. Any better than expected news could turn the USD bullish, which may weaken demand for gold.

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