Gold News

Gold ready to rally again

After a poor day yesterday the commodity market today (October 3rd) showed renewed signs of the bullishness more characteristic of recent trends.

Gold fell as low as $728.40 per ounce yesterday, a considerable drop from the peaks around $740 seen in recent weeks, but edged back up this morning to $736.

A key factor in helping the gold price to edge down from 27 year highs to hover around the $730 level this week has been rapidly changing crude oil prices.

Gold traditionally follows the stock market patterns of fellow commodity crude oil, with a rise in the oil price generally entailing a rise in those looking to buy gold, with a consequent boost to its price.

Oil for November delivery is now trading at around $80 per barrel, considerably down from the peaks of recent weeks, but many experts confirm that neither crude prices nor any other factors will dampen long-term prospects for gold. said: "There is support for gold at $726 and stronger support at previous resistance at $690 to $700 and the 50 day moving average at $693."

"Gold was up by nearly 11 per cent in September alone and given the size of the run up a consolidation is to be expected," suggesting that a temporary drop-off in price was always a cyclical likelihood, with a renewed rallying of the metal very probable.


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