Uncertainty in Currencies Leads to Higher Gold Prices
October 13, 2009 by goldguru · Leave a Comment
Mark O’Byrne submits:
Gold: Gold closed Friday night trading at $1,048/oz and is currently trading $3 higher at $1,051/oz. In euro and GBP terms, gold is trading at €713/oz and £666/oz and has risen sharply in these currencies in recent days. Support for gold is currently seen at $1,040/oz and resistance at $1,062/oz. The record weekly close was bullish from a technical perspective but gold may need a correction and consolidation prior to challenging the next psychological level of $1,100/oz.
Contrary to the popular perception that gold’s rally has been purely a function of dollar weakness is the fact that in the last 3 weeks the dollar has actually strengthened against the euro and other major currencies (EUR/USD was above 1.48 on September 22nd and is at 1.4727 today).
