, IncMarch 22, 2010 - The week of trading has seen Spot Gold Prices rise from $1,101.60 to $1125.72 (+$24.12). The weeks advance was aided by the U.S. Federal Reserve committing to keeping rates “exceptionally low for an extended period of time” and the reemerging concerns in Greece and across the Euro-Zone.
Looking ahead to next week, we could see some much needed relief in commodities and especially in the Precious metals sector. US CPI figures are expected to show the annual pace of core inflation slowed to 1.4%, this matches a five-year low originally set in August of last year, and this would be supportive of a bearish scenario. With short-term traders looking to take profits, and a majority of retail investors turning their attention to Congress and the Health Care reform bill next week, there is an apparent absence of upward pressure on the current Gold price level.
Technically, prices are showing an Inverted Hammer candlestick (a common bearish reversal signal) along with confirmation on the following bar. More significantly, this is after testing resistance at support-turned-resistance marked by a rising trend line set from the swing low in early February.
Although long tern Gold prices appear bullish, we could see dips in spot pricing over the near term. These price corrections are what long-term investors look for when adding to their positions or attempting to get into a position if they missed the initial buying opportunity. The week ahead could create some opportunities to “buy the dips”.
If you would like more assistance in timing an entry in the Gold market, contact one of our Gold Price experts, who will be more than happy to assist you.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
