Gold News

Current Gold Prices are a 'bullish signal'

A gold commentator at the largest bank in Africa claimed yesterday (June 11th) that the yellow metal looks set to pass the $1,000 per ounce mark, AXcess News reports.

The psychological four-figure barrier was last broken on February 20th as gold threatened to push above its all-time high of $1,030 per ounce, reached in March 2008.

Standard Bank analyst Walter de Wet has now explained that investors are continuing to Buy Gold at higher prices than in recent weeks - an extremely "bullish signal".

He told the news provider: "The difference now is that physical buying [in gold] is taking place at a gold price which is $70 higher than it was in mid-April.

"Our index which tracks the net flow of gold buying and selling in the physical market has jumped in recent days, confirming the positive momentum for the gold price from the physical market."

Those comments come after Goldman Sachs announced last week that it has increased its 2009 oil price prediction to $85 per barrel.

"As the financial crisis eases, an energy shortage lies ahead," said analysts Jeffrey Currie and David Greely in a research report quoted by Bloomberg.

"[Crude's rise so far this year is] likely to be but the first stage in the oil price rally that we expect will accompany a recovery in economic activity."

Rising oil prices are often viewed as an indication that gold prices will also increase.

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