, IncFebruary 9, 2010 – Gold prices have continued a strong recovery today after reaching a three-month low on Friday. Trading has reflected renewed investor interest after technical trading factors contributed to last week’s sell off. The dollar, which has recently put pressure on gold prices with its own rise, dropped down nearly 1% to 79.59 at mid-day today, possibly contributing to gold’s climb.
At mid-day, gold prices had risen to $1,076.90, an increase of $14.50 from Monday’s close. Friday’s close of $1,052 represented a fall to a new three-month low for gold and triggered automatic sell orders set for such an event. With prices appearing to find their bottom and the RSI (Relative Strength Index) dropping to 38.5, gold prices have started climbing.
April delivery gold on COMEX has also been rising to $1,066.2 on Monday and $1,079.8 at 1:00 PM on Tuesday. August deliveries held firm at $1,192 as prices are expected by many to rise during the next few months.
This news is favorable for many investors, as gold prices have dropped around 13% since reaching their all-time high of $1,226 in December. Profit taking and technical trading led a number of investors to sell, and a rise in the US Dollar Index was also considered a factor in the price drop.
As investors see gold prices increase, it is likely that many will look to get into positions on bullion in advance of any substantial price gains. Traders who are interested in adding gold holdings should contact their gold exchange and buy gold before any prolonged rally begins.
Ronald Stevens
Senior Staff Writer - GoldPrice.net
