Gold Prices Test $4,500 as August Rebound Continues

Gold's recent surge has been anything but smooth, with prices hitting record territory earlier in the year only to be followed by a steep correction as the US dollar strengthened and rate expectations shifted.

The precious metal suffered a pullback after investors took profits, but August brought another sharp rebound, pushing gold to test the $4,500-an-ounce area.

According to Rick Kanda, Managing Director at The Gold Bullion Company, gold needs a combination of falling or stabilizing real yields and a weaker US dollar, along with strong investment demand, to break sustainably above $4,500/oz.