Gold hits five-month high on QE hopes

Gold has climbed to its highest level in more than five months as speculation the next round of QE in the US is just weeks away pushed the precious metal higher.

Gold's spot price rose 0.5% to $1,696 per troy ounce this morning, the highest since Mid-March, as it extended its recent gains. Since hitting a low point in May below $1,600 it has gained over 5%, although it remains some way off February's high when it traded near $1,800. The gains come as weak data from across Europe, China and the US puts further pressure on policy makers to take action to boost growth. Last week Federal Reserve chairman Ben Bernanke said the US central bank was ready to take action to tackle unemployment, pledging further stimulus as and when it is needed. ...