Daily Certified Gold News Posted by James Randolph on April 07, 2010
April 7, 2010 – As of 11:00 a.m. Hong Kong time, gold had veered away from the quarter-ending $1126.10 by as much as $10.20 an ounce, confirming confidence in the metal’s ability to sustain its rise which started a little more than two weeks ago. The new sales figure of $1136.30 chalked up an increase of 0.91%. The new figure is now $32.3 detached from the psychological level of $1104.
The new figure, however, was a repeat of the $1136 posted a day earlier. I t will be recalled that the week before the $1126.10 run, gold was in the vicinity of $1134. At the moment, price fluctuation is frequent as usual and sales figures are hard to nail. It may take a few more days for growth outlines to be more defined.
Hwang Il Doo of KEB Futures Co. in Seoul observed that gold “is taking a breather after a good run” and “will bounce back, though, as an improving economy hoists overall demand for commodities.”
Another analyst attributed the increased strength of the dollar and “profit-taking following the holidays” as to have curbed the continued rise of gold prices. He voiced expectations that the “precious metals would consolidate.”
Analysts are keeping a close watch on both gold and the US dollar which is gathering strength. It had made gains against the Euro for three day, according to a report released yesterday. Gold’s rise is usually curbed by a strong dollar.
Aside from the dollar, other economic factors will come into play to influence gold’s movement. The continuing Greek crisis which has wide- and far-ranging impact. The speculation that the Federal Reserve will allow the current interest rate to remain low. The general improvement of the US economy. The crude oil price that had already risen to a 17-month high and had been predicted to reach as high as $100 a barrel within the year.
Some of these factors favor certified gold’s growth, others do not. Let’s wait and see.
Senior Staff Writer – Certified Gold Exchange