Learn How Gold Bullion Ended The Quarter With A Two-Week Rise Directly At Gold-Bullion.org
April 5, 2010 - Gold bullion sustained its two-week rise to end the first quarter with $1126.10 an ounce to the satisfaction and relief of market players who had been anxiously watching gold’s performance. Analysts attributed the increase to a bunch of economic factors. Crude oil price rose to $85 a barrel, the US dollar fared weakly against the Euro, improved unemployment situation showing an increase in employment numbers and a decrease in the number of unemployed Americans dependent on welfare, higher commodity demand occurring around the world and other signs of an improving US economy.
The $1126.10 number is neither high nor impressive but significant – gold bullion had stayed clear of the $1100 psychological level from a relatively safe and secure distance. Analysts and investors have been using this level as a yardstick since the start of 2010 to measure gold’s performance. But more important than the number is the significance of the sustained price increase which gold had not been able to achieve before in the first quarter. It generated momentum which may can go a long way.
In previous weeks, gold bullion had been on uneasy footing and could not sustain a steady rise. It had a big slip in February, down to $1103.70 and had not found it easy maintaining a firm foothold until the final two weeks of March.
Said Mark O’Byrne, the executive director of broker GoldCore Ltd.: “The higher quarterly close is important technically and shows momentum and the medium- and long-term trend remain upward. The slow, steady and gradual rise of gold in recent quarters also contradicts that commonly held view that gold is a speculative bubble.”
However, Leonard Kaplan, president of Prospector Asset Management, held a more cynical view. He said: “I’m not bullish about these prices. Gold is still trading within a narrow range and prices have been propped up by investor interest, not fundamentals, and thus are vulnerable.”
