Gold reclaims $660, highest level in more than a week

Gold futures rose Monday morning, building off last week's more than $8 gain as the U.S. dollar weakened and as traders continued to gauge inflation concerns and the likelihood of an interest rate hike by the Federal Reserve.

Gold for August delivery climbed as high as $662.50 an ounce on the New York Mercantile Exchange, its strongest intraday level since June 7. It's eased back a bit since then, but was still up 60 cents at $659.30 an ounce.

The benchmark contract rose $2.80 an ounce on Friday to score a total gain of $8.40 for last week.

"The precious complex staged a modest rebound Friday as tame CPI data curbed expectation for the Fed to hike interest rates, leading the dollar to give back some of its recent gains," James Moore, an analyst at TheBullionDesk.com, said in a note to clients. See Economic Report.

And "gold's current fortunes improved overnight as buying precipitated by a declining dollar ... against the euro and especially the yen gave short-term oriented traders another opportunity to attempt resistance tests near $660 per ounce," said Jon Nadler, analyst at Kitco Bullion Dealers, in a morning note.

The yen fell to a new all-time low against the euro and traded near a four-and-a-half year low against the dollar Monday, after a strong rally in Asian equity markets prompted investors to build the so-called carry trades.

Source : www.marketwatch.com