Gold clears $1,600 as Spanish doubts return

With some positive economic action in China over the weekend, and with one less worry in Europe,  August gold futures are perched atop the psychologically important $1,600 an ounce level in late trade on Monday, gaining $8.80 on the day.

MarketWire spoke to Chintan Karnani, chief analyst at Insignia Consultants, who explained that gold's advance on Monday may show that investor confidence was a "bit too excessive and [assumed a] lack of further negative news from Europe."

According to The Wall Street Journal, now that the EU is to provide support to the Spanish government to shore up their banks, investors' attention will once again turn to Greece ahead of the bankrupt country's general election on June 17.