Gold range trading pattern likely to persist

 Gold investors and traders remain focused on the prospect for further US quantitative easing. Ben Bernanke continues to talk about the need for sustained accommodative policy until the end of 2014, fuelling expectations amongst gold bulls that QE3 will occur. The Fed chairman spoke on Monday, lifting gold prices.

However, gains were brief and over the next three days the market declined until a modest recovery on Friday saw gold close  higher for the second week in succession.

However, sentiment is not particularly strong. The gold market has now spent thirteen days within the 1627 to 1690 trading range.

Next week, US jobs data is expected to be slightly softer than the figures released for February. If this happens then gold will rally. However, unless the market is boosted by positive external news the recent range trading pattern looks set to persist for some time.

Read more:
Investment in Gold Now More Lucrative While both equities and oil retreated from the beginning of the week, gold followed up a strong start with another rally on Tuesday, taking out the ke...
Precious metals outlook boosted Instead of a multi-year downtrend, with disinvestment putting pressure on precious metals prices over time, many of the variables that drive gold pric...
Gold Prices Trending Higher Last Friday, gold futures advanced for a third-straight session in a row to end up nearly 2% for the week. Prices for the yellow metal had risen by m...
Gold prices seen higher in the weeks ahead Gold prices are expected to rise in the coming weeks building strength on the previous weeks' gains. On Friday, the yellow metal tallied a five-week ...

Leave a Reply

Your email address will not be published. Required fields are marked *