Gold extends rebound gains

On Friday, the higher than forecast US PPI data did initially send gold prices tumbling. The metal fell back from an earlier session above $2,008, to a low just ahead of $1,995. After a brief rebound towards $2,005 another attempt on the downside stalled ahead of 1,995 again and that interim double bottom base set a rebound that lasted into the weekly close. It seems that on this occasion gold traders were caught a little short on the day and that helped to propel it back to a session high at $2,015.22. Gold later closed the week at $2,013.59. Nevertheless, that was still below where the metal had closed the week before, at $2,024.26. Overnight the metal has rebounded further and lifted to a high so at $2,022.92. The further rise comes as the USD/JPY dips back underneath the 150 handle this morning. Gold is currently trading at $2,021.60