Gold News

Gold Prices 'have technical support' for upside break

Calyon metals analyst Robin Bhar has suggested today (May 22nd) that Gold Prices have scope to move higher if current market data is anything to go by, Reuters reports.

Investors are moving to Buy Gold at present over concerns about impending inflation and the devaluation of the dollar, with which it traditionally enjoys an inverse relationship.

With Gold Prices subsequently hitting a two-month high above $960 per ounce today, Mr. Bhar has explained that bullion looks to have technical factors that support further gains.

He told the news provider: "We have closed for two days above the $935 level, so the technical guys will be saying we now have confirmation of a successful upside break.

"We've seen in the past gold has put in some false starts and never really achieved a clean break-out. If we close at these sorts of levels, it will look really good on the weekly charts and provide even more upside potential."

A similarly optimistic view was put forward last week by respected gold columnist Lawrence Williams, who noted that the yellow metal represents a solid investment in the ongoing economic turmoil at present.

"The global debt position is still an enormous cause for concern and many of the noises coming from politicians talking of 'green shoots' and 'safety nets' seem to be little more than hot air designed purely to try [to] build general confidence," he wrote on Mineweb.

"So gold, which thrives on economic uncertainty, should continue to play a major part in wealth preservation. It thus makes sense for at least a significant portion of one's wealth to be invested in gold."

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