Gold in US dollar terms well supported

Gold is trading at just shy of $1,160 per troy ounce as the new week begins, and thus not far off the 6½-week high it achieved last Friday. In other words, gold is holding its own well despite the heavy losses suffered by commodities across the board.

Nonetheless, gold has not been able to gain any further in spite of the sharp rise in risk aversion and a noticeably weaker US dollar, says Commerzbank.