The price of gold hit its highest level in four months today as the US dollar dropped.
The yellow metal rose for its third session in a row, reaching $1,333.10 a troy ounce as the dollar index, which measures the greenback against a basket of currencies, dropped to as low as 91.3080. Spot gold climbed to $1,332.52 per troy ounce.
Gold, which is sensitive to movements in the value of the US dollar, broke out as the greenback fell in reaction to "much more hawkish than expected ECB [European Central Bank] minutes", analysts at Accendo Markets said.
ANZ Research said: "ECB minutes were interpreted on the hawkish side due to a discussion of a 'gradual shift' in guidance from 'early 2018' – much earlier than had previously been discussed".
Gold prices have gained almost seven per cent in the past 30 days, BMO Capital Markets' Colin Hamilton said today.
Despite a strong start to 2018, analysts at Goldman Sachs have predicted gold will fall to $1,200 per troy ounce by mid-2018.
"There is a lot of doubt on how long prices have to run from here … Prices have risen despite the Fed [US Federal Reserve] raising interest rates and the main driver has been the US dollar, which we continue to see help gold run higher in the first quarter," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.