Gold reached an 18-month high on Wednesday, trading recently at $1015.85/oz.

James Moore, analyst at TheBullionDesk.com said that it had closed Tuesday in a buoyant mood following comments from Fed Chairman Bernanke suggesting recession in the US could be over.

"Gold held ground around the $1000 level initially yesterday but succumbed to pockets of profit taking in European and early US trade, dipping to a low of $992.50. Dip buyers supported the metal across the day though with gold rallying towards the end of the day as the EUR/USD cross-pushed higher.

"Gold hit a late high of $1009.85 and has made a strong push higher in European trade this morning clearing $1015 after stop-orders were activated," Moore said.

"The dollar looks set to provide further direction while today could be the day gold sets a new all-time high as clearance of the $1018-20 area triggers further stops and technical buying interest," the analyst concluded.

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