Is gold's recent rally sustainable?

The gold price has rebounded off lows seen at the end of last year, having endured one of its worst ever years in performance terms, but is the rally about to run out of steam?

Last year the precious metal tumbled 28% in value - its worst year since 1981 - as the US economy recovered apace, inflation remained subdued, and the crisis in Europe abated. So far this year it has recovered some lost ground as fears over emerging markets' widening deficits spooked investors. Since closing at $1,202 at the end of 2013, gold has climbed over 10%, and currently trades at $1,342. However, a number of managers are dubious about adding to their positions, fearing the asset class is unlikely to move much higher from here in a world which has largely healed from the 200...