Gold bulls keep smiling — metal price pushes past $1,200 mark

Gold extended overnight gains on Monday, trading at a 3.5-month high and pushing briefly past the psychologically important $1,200 mark in New York.

Lower world stock markets, including sharp losses in the U.S. stock indexes this morning are prompting investor and trader demand for the safe-haven yellow metal and other hard assets.

Gold bulls keep smiling — metal price nears $1,200 mark

Spot gold reached a peak of $1,201.40 an ounce near 14:00 pm ET, its strongest since June 22, and it was trading at 1,195.90 mid-afternoon.

Analysts believe that the metal’s 5% gain last week, its biggest weekly rise since July 2013, has made many investors more convinced that the metal’s rally since the start of this year is sustainable.

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