Gold is on a hot streak

Photo by Laurence Griffiths/Getty Images

The spot gold price has enjoyed another strong session in Asia, rallying by a further $7.42, or 0.64%, to $1,164.4 an ounce.

The price has now jumped over 5.5% over the past six trading sessions.

Given the strong upside momentum, traders may be eyeing a move above the August 21 high of $1,168.40 in the coming sessions.

While gold usually suffers during times of improved risk sentiment, recent weakness in the US dollar and firmer global oil prices are helping to lift inflation expectations. Short market positioning is also helping the move higher for the moment.

Year-to-date the spot price has fallen 1.66%, a comparatively strong performance compared to some industrial metals prices.

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