Gold rose as New York opened for the week, only to hit wild volatility as the London session drew to a close.

The reason for the pick up? Last week's $30 sell-off came too fast seems to be the consensus today.

"Gold's going to rebound," says one New York trader. "There's going to be a correction in the metals because of the sell-off last week. We traded down to $603, so we need to bounce back."

"People came back on Monday and decided the sell-off was enough," agrees another analyst, this time in Stamford, Connecticut – home to many US hedge funds. "It's natural we get some buying."

Commodity traders are saying the same of copper too, according to the newswires today. But physical buyers in Asia seemed less keen to undo last week's plunge, however.

Tokyo was closed for a public holiday Monday, leaving slow trade in the other Asian gold markets to pick up where New York left off at the end of Friday.

"At these lower levels, physical demand is expected to provide some form of support, at least in front of the psychological level of $600 and again at $590," Standard Bank said in a daily report.

The 7-day relative strength index for gold futures fell to 29 on Friday, reports Bloomberg – a low point that could signal a sharp rebound ahead.

In the currency markets, meantime, the lack of any significant data releases today has seen the Dollar dip slightly versus the Euro and Sterling. But the almighty Greenback remains much stronger than most analysts had expected at the end of last month.

The "crowded trade" of shorting the Dollar may yet cost hedge fund and investment bank traders dear. To find out more about what's supporting the Dollar at these levels right now, click here and read on...