Traditionally demanded in the times of uncertainty and rising prices, but the dollar was just another boost for gold in the past period. The dollar index that gauges the performance for greenback against its six major trading partners is trading around at its lowest in three years.
With the start of the new week the volatility is likely to remain high and the gains are most likely to extend with the majority of analysts now eyeing $1,600 per ounce.
Some volatility on Monday with the start of the week is expected, especially as the record prices prompt some profit taking and positions adjustments ahead of the new week and assessing the outlook for the fundamentals to be released.
The sentiment will be affected with the main data due later in the week with the Reserve Bank of Australiaâ€™s rate decision, the ECB and BoE rate decisions, and most importantly as well the US jobs report.
High volatility is expected with some correctional movement to be seen for gold, yet our general bias for the metal remains generally to the upside this week.Â
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