Gold May Extend Last Week's Rally as Charts Signal Upward Trend
Source: Bloomberg, Glenys Sim (5/11/09)
"On average, the metal this week should trade higher than in the past six weeks."
Precious metals have made "massive price gains" after breaking important resistance levels on the charts, according to precious metals refiner Heraeus Metallhandels GmbH. Prices have climbed above the 50-day and 100-day moving averages, indicating gold may climb further.
"For the coming days we expect reduced volatility and a trading range between Thursday's high and $895," Wolfgang Wrzesniok-Rossbach, head of marketing and sales at Hanau, Germany-based Haraeus, said in an e-mailed note. "On average, the metal this week should trade higher than in the past six weeks."
Gold for immediate delivery was little changed at $915.38 an ounce at 8:51 a.m. Singapore time. The metal reached $925.54 an ounce on May 7, the highest since April 2, and ended the week up 3.4%.
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures by 1% in the week ended May 5, according to U.S. Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, outnumbered short positions by 129,991 contracts.
Among other precious metals for immediate delivery, silver was little changed at $14.02 an ounce, platinum dropped 0.6% to $1,144 an ounce and palladium climbed 0.4% to $242.50 an ounce.