See How Gold Bullion Is Gaining Momentum Directly At Gold-Bullion.org
April 7, 2010 - Gold bullion has gained $10.20 (11:00 a.m. HK time) going into the middle of the first week of April. Gold bullion prices ran up to $1136.30, some 0.91% increase over last week-end’s $1126.10.
Could this be the sign of an imminent momentum? We quoted in the April 5 update Mark O’Byrne, executive director of GoldCore Ltd, interpreting the run at the end of the first quarter as a sign showing momentum: “The higher quarterly close is important technically and shows momentum and the medium- and long-term trend remains upward. The slow, steady and gradual rise of gold in recent quarters also contradicts that commonly held view that gold is a speculative bubble.”
The end quarter figures had now been topped. Do we see the current mid-week performance as a momentum in the making? There are signs that look favorable to gold’s run getting extended but there are also signs that are historically unfavorable to gold bullion.
Reports that the Federal Reserve was not keen on increasing interest rates drove investors to put their money into better yielding investments. Gold is just one of these investments. The improving economic situation is ground for fertile growth of investment in equities.
The US dollar is gaining strength, generating increased economic activities. Purchasing power has increased. Here lies one area of concern. A strong gold and a strong dollar do not mix.
The price of crude oil is on the rise, with some analysts predicting $100 a barrel within the year. Crude oil price indicates increased economic activity and increasing oil prices were one of the factors attributed to by analysts that influenced the first quarter run of gold bullion prices.
