Gold reaches 1-month high on safe-haven demand

Gold extended gains on Monday and reached a its highest level in a month as risk aversion lifted demand for the metal as a safe-haven.

The yellow metal reached a peak of $1,287 an ounce before ending the session a tad lower around $1,283 an ounce.

Fading hopes of a Fed rate hike this week have also underpinned gold’s rally. “The bright metal is expected to resume its previous bullish trend,  and an on-hold stance from the US Central Bank will likely see it breaking through 1,303.00, this year high, en route to the 1,500 level,” said Valeria Bednarik, chief analyst at FXStreet.

“The daily chart presents a strong upward potential, given that the technical indicators head strongly higher near overbought territory, whilst the price keeps advancing far above its moving averages”, said Bednarik.