The gold price continued to rally Monday in the spot market Monday, and remains near its highest point for more than a week, as investor appetite for physical supply continues to cause shortages.
The yellow metal has rebounded from recent multi-year lows when both cash gold and futures plunged to around US$1,321 an ounce on the 16th April 2013.
Around the world demand for coins and bars worldwide has soared, with the U.S. Mint gold bullion coin sales flying past 203,000 so far in April - the most of any month since December 2009. Premiums for gold bars has jumped to their highest in several years.
This week has extensive data out which potentially will impact the price of gold, which includes the U.S. employment report, central-bank meetings along with month-end sales figures on the buying of physical gold - such as news from the Perth Mint - which has reported that business has 'doubled'.
Gold traders will be most keen for the physical buying numbers, following some analysts saying that the huge increase in demand was due to pent-up demand
Last week futures for June delivery added over four per cent to US$1453.60 an ounce, with silver also well supported adding 3.5% to US$23.76 an ounce.
Euro governing council meets, may impact gold
Later in the week the European Central Bank’s governing council meets with the possibility that the bank may cut interest rates from the record low of 0.75% - which inturn could put pressure on the euro - which then could impact gold due to its inverse correlation with the U.S. dollar.
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