FXstreet.com (Barcelona) - Gold prices rallied during Monday's Asian session from opening prices around $1.150, breaking through Nov 18 high at $1.152, to hit a fresh all time high at $1,165 so far.

Gold prices have been going through a sharp rally in the last 4-weeks, and, according to the Saxo Bank Strategy Team continues appreciating within overbought levels. Gold still catches most of the headlines as it despite moving into a very overbought situation continues to make new highs reaching USD 1,150, a 12.3% rally since the news about India buying IMF gold broke some weeks ago.

On a wider perspective, Gold prices could continue rallying towards $1,300, says the Saxo Bank Strategy Team: We see the break above the 2008 high as a signal that a new rally has been initiated which could take the price of gold towards an initial target of USD 1.300 followed by a potential 5 year target of USD 1.500.