As Federal Reserve takes the first step in monetary easing by announcing a 50 BPS cut in key policy interest rate, Gold becomes attractive in comparision to treasury bonds and demand for the yellow metal surges taking Gold prices to a new record high of $2631

Second, escatations in middle east tesions add fuel to already exisiting safe haven demand gor gold.

If bulls stay firm and succeed holding prices above $2620, markets estimate a further advance in rally that is likely to reach $2700 over an extended period of time.