Gold Price Climbs<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Gold prices climbed Monday morning against a weaker US dollar. So far in 2012 gold has rallied $108 and has broken its 50-day moving average. Gold has now seen a rise for three consecutive weeks and many experts are expecting this growth to continue.
Gold prices are coming off of a $9.00 rise last Friday, which resulted in the yellow metal extending its weekly gain to 1.7%. In doing so, the spot price of gold posted its third consecutive weekly advance. The gold price, which was bolstered last week by a broad-based rally in financial markets and weakness in the U.S. dollar, has appreciated 6.7% in 2012.
Silver rose $0.11 to $32.29 Monday morning after significantly outperforming the gold price last week. Gold's sister precious metal surged 8.3% over the five-day period, trading to a six-week high and stretching its gain in the New Year to 16.0%.
Looking ahead to the coming week, Ben Bernanke and the Federal Reserve will be in focus as Wednesday's FOMC meeting approaches. A growing set of economists have speculated that a third round of quantitative easing (QE3) is forthcoming due to stagnation in the U.S. labor and housing markets and ongoing sovereign debt concerns in Europe. However, the consensus view among economists remains that the Fed will wait to launch QE3 until later in the year. Investors will therefore be keeping a close eye on the price of gold for clues as to the direction of U.S. monetary policy.
The remainder of the week includes several key U.S. economic reports – including Pending Home Sales on Wednesday; Weekly Jobless Claims, Durable Goods, Leading Indicators, and New Home Sales on Thursday; and Fourth Quarter 2011 GDP and University of Michigan Consumer Sentiment on Friday. If the data continues to indicate tepid economic growth, the gold price is likely to remain well supported.
 
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