Thursday, Oct 8th, 2009
Gold hit new record highs for a third day on Thursday, as funds move in.
The spot price, which closed at $1,044 an ounce on Wednesday, rose above $1,055, helped by dollar weakness.
“It’s pretty much all a fund and investor driven rally,” said Michael Kempinski, a trader at Commerzbank, told Reuters. “Those guys like to buy at the highs and have the power to push it through.”
He said gold prices could hit $1,100 an ounce as private investors moved following the increased interest.
Using technical analysis, Barclays Capital predicted on Wednesday that the gold price could rise as high as $1,500/oz. The bank is targeting $1,050/oz initially, followed by $1,120/oz. It advised holding long positions in the precious metal.
This article was posted: Thursday, October 8, 2009 at 3:52 am