Gold Forecast for Return to Bull Trend

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"The March 2008 peak of $1,033 is the next key level to note. . .While the market is likely to struggle near this area, we expect it ultimately to break (higher), as gold continues to shine."

Gold shone this week as investors looked for a haven amid weak economic data and uncertainty about revamped plans from the U.S. Treasury to rescue the financial sector.

Over the week, gold rose 2.7% to $935 a troy ounce after reaching a near seven-month high at $953.30 on Wednesday.

Stephen Briggs, at RBS, described this week's inflows into gold exchange traded funds, which reached a record 3.54m ounces (110 tonnes), as "astonishing," noting that they were equal to 5% of global gold mine output.

Technical analysts at Barclays Capital said gold prices were resuming their long-run bull trend after eight consecutive years of gains. "The March 2008 peak of $1,033 is the next key level to note," Barclays said.

"While the market is likely to struggle near this area, we expect it ultimately to break (higher), as gold continues to shine."

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