FXstreet.com (Barcelona) - Gold futures jumped to a fresh 3-week high yesterday, on re-emerging fears of inflation given China´s interest rate hike. The most active contract for April delivery reached as high as $1368.00 before settling within a tight range around $1363.00 a troy ounce today. Overall sentiment regarding the yellow metal has changed to the upside from substantial weakness in recent weeks, however analysts still are timid to support any bullish run without obvious evidence of inflation in some of the leading economies. All eyes will thus be on Fed Chairman Ben Bernanke today as he speaks to the House Budge Committee in an effort to gain hint into near-term monetary policy. Michael Wright over at the DailyFX is skeptical of gold being able to sustain any upside momentum due to signs of a robust recovery in key economies, reporting: ¨The rally in gold this past week is expected to be short-lived as the global recovery slowly gathers pace. Indeed, price action remains capped by $1360/oz for the second consecutive week. So long as the bullion remains capped by this level, downside risks remain.¨

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