Risk off is dominating the short-term scenario and bullion has taken advantage of this rally to jump back to $1,680. The price is now less than 1% from its seven-year high and any further stock correction or dovish decision by a central bank could lift the price further yet. Another positive element for the gold price is the weakness of the greenback, with the Dollar Index continuing to fall. Vice versa, if markets are able to find a support and to build a solid rebound, gold could quickly slip back to $1,650.
