Gold

Gold rallies above 670 usd, hits fresh 7-month highLONDON (AFX) - Gold rallied to a fresh seven-month high above 670 usd as the dollar dipped further against the euro and as traders took comfort from steadying oil prices.At 10.13 am, spot gold was quoted at 668.75 usd an ounce, up from 663.60 usd seen yesterday in late New York trades. Earlier, the metal touched a fresh seven-month high of 670.40 usd."With oil and the greenback adding additional support to gold's already favourable fundamentals a test of the 676 usd July high seems inevitable," said TheBullionDesk.com analyst James Moore.He added today's move above 670 usd bodes well for gold although given that the metal has struggled to go higher on a number of occasions, it may pause before testing the 676 usd level.The dollar extended yesterday's falls against the euro in early European trades as participants awaited Federal Reserve chairman Ben Bernanke's testimony to a US Senate committee later today.Gold usually moves in the opposite direction to the dollar as it is seen as an alternate investment to the US currency. Also a weaker dollar makes gold, which is traded in dollars, cheaper for holders of other currencies.Separately, gold traders were tracking oil prices, which edged slightly lower today after surging yesterday as the International Energy Agency upped its global demand forecast for this year.Strong oil prices usually benefit gold as they increase its appeal as a hedge against oil-led inflation."The current rally (in gold) bodes well for the remainder of the year and could well see prices push towards their all-time high around 850 usd," said Moor.