Spot Gold Hits Six Month High: Up To $1,696

Reuters reported that gold reached a nearly six-month high, climbing to $1,696 an ounce, as hopes of further monetary easing by the U.S. Federal Reserve and European Central Banks continue to drive investors.

As quoted in the press release:

The likelihood of the European Central Bank unveiling a plan on Thursday to definitively reverse the debt crisis that has plunged the euro zone into recession gave the single European currency a boost, driving gold priced in euros to its highest level this year.

Andrey Kryuchenkov, an analyst at VTB Capital commented:

For a sustained rally past $1,700, you do need to see definite action from the ECB and a substantially lower dollar. The fact that the other precious metals are rallying as well and it’s not just gold, shows it is macro sentiment that is driving the market at the moment … All that promise needs to turn into concrete action. And for gold in the long run, it needs any sort of liquidity boost, of balance sheet expansion and for (bond) yields to stay low.

Click here to read the full Reuters report.