Gold rallied to a near one-year high on Monday with traders and analysts citing both fund buying and possible central bank demand as markets opened a new quarter against the backdrop of a weak dollar. The spot price of bullion peaked above the $1,790 an ounce level last seen in November 2011.
Dealers said a flurry of fund-related buying led to nearly 4.0 million ounces of gold changing hands on the US futures market in a matter of moments. Bullion traded from below $1,530 an ounce to just above $1,680 in the second quarter, with the spot price declining 4 percent from the previous quarter. In the third quarter, it traded above $1,787, gaining nearly 11 percent.