Bullish Outlook Continues for Gold. $845 Seen as Next Resistance Level.

Source:

"We believe the story for gold is still a bullish one in the short term," said Investec Australia. "With the U.S. dollar still very much under pressure, geopolitical tensions rising and of course with the start of a new quarter comes the reallocation of fund money which will more than likely see gold in favour."

Gold bounced on Wednesday after volatile trade at the end of 2007, and dealers said the outlook remained bullish as a struggling U.S. dollar and tensions in Pakistan raised the metal's safe-haven appeal.

But gold would have to crack a tough resistance around $845.40, its highest since early 1980 hit last November, to sustain the uptrend. The market awaited the release of the U.S. Institute for Supply Management index for December, a key gauge of U.S. economic performance, later in the day...

"We believe the story for gold is still a bullish one in the short term," said Investec Australia. "With the U.S. dollar still very much under pressure, geopolitical tensions rising and of course with the start of a new quarter comes the reallocation of fund money which will more than likely see gold in favour."

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