Gold likely to rise on hedges: analyst

However, he warned that while a rally is likely in the long-term, a correction may take place after the metal reaches a high.

Gold futures closed higher last week at US$1,161 in New York, as the lingering debt crisis of Greece caused investors to put their money in the metal to aver risk.

At the same time, demand for the metal is anticipated for Asian markets as they enjoy an economic recovery.

According to Yang, gold may find pressure at US$1,166, US$1,182 and US$1,200, while it may find support at US$1,144, US$1,132 and US$1,120.

He said from an empirical perspective, a rally may last for a week or two, adding the metal may test a new high this week.

The first wave of correction may occur at the end of April, he noted.

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