Gold hovered at a 2-week high below 1700 in European morning. Comments from the Fed Chairman Ben Bernanke’s that easing monetary bias would continue revived hopes of QE3 and sent gold higher. Yet, whether upward momentum of the yellow metal would be maintained depends on the follow-through other actions by the Fed or other central banks. In our opinion, gold would remain in consolidative mode although more meaningful should be seen later in the year.
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