There were many crying the Gold Bubble had burst, but today in Asia Gold rallied 1 per cent, snapping four consecutive sessions of losses as a weaker dollar helped battered commodities stage a comeback.

Oversold Gold Miners also bounced back today, Australia's biggest gold miner Newcrest Mining, which was the worst performer among the ASX top 50 companies at the close yesterday, rose $1.56, or 4.8 per cent, to $34.42.

Spot gold gained 1 per cent to $US1644.40 an ounce, after sinking as much as 7 per cent to a seven-and-a-half-month low near $US1530 in the widest daily swing on record on Monday.

US gold rose 3.3 per cent to $US1647.10.

We expect to see Gold recover back above $1700 short term and our 5 year view on the US Dollar remains very negative. said Shayne Heffernan of HCM.

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Gold Chart with HCM Custom Indicators

Gold's appeal as a safe-haven asset remains intact given the uncertainty in global growth and concerns about Europe's sovereign debt, and strong investment demand is likely to push gold towards $US2000 by the end of the year, said Alexander.

Technical indicators suggested gold could see more short-term weakness, but long term gains looked certain.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust , fell 0.4 per cent to 1246.762 tonnes by Sept. 26, after standing unchanged for four sessions.

Physical buying has increased over the past week or so, as spot gold prices sank nearly 10 per cent in the past four sessions.

The premium on gold bars in Hong Kong had risen to more than $US2 per ounce above spot prices, as a result of increased demand, he added.

Other precious metals also rebounded from Monday's trough.

Spot silver rallied 2.8 per cent to $US31.51, before easing slightly to $US31.30. US silver jumped 5.4 per cent to a high of $US31.58, on course for its biggest one-day rise in two and a half months.

Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services. www.livetradingnews.com