$1,700 level breaks bullion’s momentum

Gold climbed to a month high on Tuesday, briefly breaching the psychologically important $1,700 level, but the rally quickly ran out of steam.

Gold for December delivery settled up $48, or just under 3%, at $1,700.40 an ounce in New York but in after hours trade the precious metal pulled back to change hands at $1,696.

Earlier in the day the CEO of world no.3 gold producer AngloGold Ashanti, Mark Cutifani told Reuters he sees sees no bubble in gold and prices could easily go higher. Gold reached a record high of $1,920 in September and at $1,700 is still up about a quarter from a year ago.

MarketWatch reports: “Gold has kind of been like a sleeping giant for the last month or so,” said Richard Ross, chief technical strategist at Auerbach Grayson & Co. Tuesday’s trading “was really decisive action.”

Gold’s best one day performance in October also dragged silver higher, which added 4.5% to $33.05 an ounce, its highest close since Sept. 22.