Gold Prices 'will test record highs again'
Phillip Futures analyst Adrian Koh claimed today (October 22nd) that Gold Prices could be set to retest their all-time highs in the coming weeks, Reuters reports.
The yellow metal hit a record $1,070 per ounce last week, dispelling the fears of some commentators, who predicted a major pullback after its latest surge into four-figure territory.
Although trading has slowed in the past few days, Mr. Koh explained that this could simply be the calm before a further move upwards as the dollar continues to struggle.
"From a technical perspective, it looks like the precious metal is pausing and consolidating after reaching the highs of $1,070 an ounce," he told the news provider.
"And if the general scenario doesn't change, as in a weakening dollar, then we could be in for a test of the record highs again when gold does break higher."
Those comments were strongly corroborated last week by Hwang Il Doo, a senior trader at Seoul-based brokerage firm KEB Futures.
In an interview with Bloomberg, he explained that the most popular view on the greenback - which trades in the opposite direction to Gold Prices - is that it will remain subdued in the longer term.
"The dollar's downtrend remains intact and so does gold's uptrend," he told the news provider.
"A pause in the dollar's loss may provide an excuse for investors to take profits which won't of course alter the bullish outlook for precious metals."
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