Gold traders bullish as ETFs stock up on bullion for the first time in three months

Twenty-four analysts surveyed by Bloomberg said they see gold adding to this week's more than 2% gain, next week.

The bulls far outweighed the bears – only six predict prices to go down post the crucial Greek elections on Sunday while a further three were neutral. Volumes on the gold market have been light the last few days, an indication of the reluctance by traders to take any strong position ahead of the closely watched poll, which could be very bullish for bullion.

The number one reason behind the confidence was the fact that gold speculators increased net-long positions by 27% in the week ended June 5 and holdings by exchange traded funds rose by just over 21 tonnes or $1 billion since the start of June.

That marked a reversal after a three-month retreat, according to data compiled by Bloomberg.

Gold futures ended 2.3% higher this the week with August contracts rising $8.50 to settle at $1,628.10 an ounce on the Comex division of the New York Mercantile Exchange after briefly touching $1,635 earlier in the day.