Gold is enjoying a corrective bounce—but investors shouldn't get too excited yet.
Bullion showed signs of life in the second half of the session on Friday, and recovered from its lows to trade above resistance and close at $1,223.70.
On Monday, gold reached a high of $1,247.40, and is trading at roughly $1,240. We believe this to be short covering into the end of the month and the end of the quarter, as investors lock in profits from this bear market.
(Read More: Three Reasons Gold Will Go to $800: RBC Strategist)