Gold investors and traders remain focused on the prospect for further US quantitative easing. Ben Bernanke continues to talk about the need for sustained accommodative policy until the end of 2014, fuelling expectations amongst gold bulls that QE3 will occur. The Fed chairman spoke on Monday, lifting gold prices.
However, gains were brief and over the next three days the market declined until a modest recovery on Friday saw gold close higher for the second week in succession.
However, sentiment is not particularly strong. The gold market has now spent thirteen days within the 1627 to 1690 trading range.
Next week, US jobs data is expected to be slightly softer than the figures released for February. If this happens then gold will rally. However, unless the market is boosted by positive external news the recent range trading pattern looks set to persist for some time.