If you're wondering what is the main cause for the turnaround in gold this week, you don't have to look any further than the Fed at the start of the week.
The fact that the Fed has helped to remove financial/credit risks in the market is a big deal as it helps to alleviate dollar funding pressures and liquidation trades, which is arguably the main reason why gold has struggled for the most part since two weeks ago.
And with dollar strains unwinding and volatility starting to ease a little, gold finds itself in a good spot as price has now worked its way back above the key daily moving averages and also the $1,600 handle for now at least.
The key for buyers is to keep above $1,600 as resistance around the 76.4 retracement level @ $1,643.96 is currently limiting the run to the upside.
It is tough to say that gold is going to keep the momentum towards $1,700 from hereon as next week will present a different challenge altogether.
The market may be correcting itself this week a little amid central bank and government action but the overall economic situation across the globe remains dire.
However, with financial risks easing somewhat, perhaps gold may not see a major meltdown - or at least not anything like the last two weeks - from liquidation trades at least.
But for any monstrous run in gold to take place, the focus of the market needs to turn back towards the low rates environment, with just enough pessimism in the risk mood to keep haven flows intact as well.