Metal Gold price JUMPs High 1 month after break above $1,300/oz

Spot gold was up 1.7 percent at $1,317.74 an ounce at 1213 GMT, while U.S. gold futures for August delivery were up $24.90 an ounce at $1,317.80.Gold hit its highest in a month on Monday as a retreat in the dollar pushed prices through tough resistance at $1,300 an ounce and as fears abated that the U.S. Federal Reserve will soon curb monetary easing. 

Buying gathered momentum after prices beat chart resistance at $1,300 an ounce, a level they repeatedly tried and failed to break in the last month. That took gold to a peak of $1,322.50, its highest since June 20. Analysts have slashed their 2013 gold and silver price forecasts after sharp falls earlier this year and expect them to remain weak in 2014 as the United States reins in monetary stimulus, a Reuters poll showed on Monday.

Gold bounces

Gold bounces give back onto investors' radars.Signal negative real interest rates and uncertainty over the outcome of the eurozone crisis will see the gold price steadily rise into 2012, according to FE Alpha Manager Mark Slater.Slater, who manages the sector-leading MFM Slater Growth fund, believes it is just a matter of time before the precious metal breaks the $2,000 mark.

Metal Gold’s dramatic crash from its $1,900 high down to $1,600 back in September make many investors running for the hills. However, Martin Arnold, senior analyst at ETF Securities, says there has been a steady pick-up in demand in recent weeks.