LONDON--Spot gold reached a fresh six-month high in early European trading hours Monday.
Last week's jitters surrounding Chinese economic and credit conditions and ongoing tensions surrounding Ukraine briefly carried into the new week -- gold touched $1,392.08 per troy ounce, its highest price since early September, before slightly to just below Friday's settlement price at $1,378.30 per ounce.
Gold is often considered a store of value and less risky bet by investors in times of higher risk.
The metal's recent rally may be running out of steam, according to analysts.
"Beyond the near term, we do not expect this safe-haven bid to linger and, thus, believe that gold will likely move lower as a result," said Barclays in a note to clients. "A stronger dollar could represent a hurdle for gold next week, especially if dollar-support emerges." A stronger buck can dent the appeal of bullion as a greenback-priced asset and as a hedge against dollar weakness.
As well as developments in Ukraine, precious metal investors will focus this week on the U.S. Federal Open Market Committee's monthly monetary policy meeting, and accompanying comments from Fed Chair Janet Yellen.
Barclays expects the Fed to scale back its gold-supportive monthly bond purchases by a further $10 billion. With this outcome widely anticipated, the market focus will likely be on the Yellen's language and forward guidance for positioning direction.
Silver fell 0.3% to $21.359 per ounce. Platinum and palladium each rose 0.6% to $1,470.25 per ounce and $774 per ounce respectively.
