Gold “Bulls” wait for a break of $1600

Following the previous day’s shock, gold price has rebounded due to the expectations that the major global central banks will introduce the policy easing.

The price of gold rose modestly in European trading on Tuesday, but it seems difficult to break $1600 level, a key resistance. Some of the investors believe that it may still be blocked.

US stocks rebounded strongly on Monday as the market expect that central banks will take action throughout the year.

Improved risk sentiment, rebound in U.S. Treasury yields, and modest rise of the U.S. dollar dampen its gain.