Gold prices rebounded from a five year low in July to the highest in seven weeks, boosted as investor confidence in the dollar waivered amid doubts U.S. interest rates will rise this year.
Although investor sentiment remains largely negative towards gold, the price of the yellow metal seems to be carving out some support above $1180 an ounce.
Gold prices continue to remain under pressure after hitting a four-month low on Friday, as the dollar tumbled against the euro on signs of renewed optimism that Greece may secure fresh funding from its’ European creditors.
The price of gold experienced its longest winning streak since 2012, last week as the price broke through the $1,200 level early Thursday and soared as high as $1,220 as Saudi Arabia launched airstrikes against Iran-backed Shiite militants in Yemen.
Interestingly, while softer oil prices have usually had a negative impact on gold prices, as it hurt gold's appeal as a hedge against oil-led inflation, the price of gold has remained firm even though the price of crude oil has slumped to fresh five year lows.
