Gold Surges on Central Banks' Stimulus Speculation

Gold prices surged to a one-week high in anticipation of further economic stimulus from major central banks. The precious metal has seen increased demand as a store of value due to concerns about global growth. Federal Reserve Chairman Ben S. Bernanke's comments that economic conditions are not where he would like them to be have contributed to the rally.

The Bank of Japan's recent announcement of stimulus measures and China's easing inflation rate also provided support for gold prices. Gold futures for June delivery reached $1,587.10 an ounce on the Comex in New York, up 0.9 percent from yesterday. This is the highest price since April 2.

However, some analysts are cautioning that rising US real interest rates and a strengthening dollar may curb demand for gold. Deutsche Bank AG cut its 2013 gold forecast by 12 percent to $1,637 in a report today, citing these factors.