Gold Finishes Week On A High Note
August 10, 2012
By James O'Dell
Los Angeles, CA. – Morgan Gold - The price of Gold advanced for a sixth straight day on Friday, with the price to buy Gold at $1,621.40 an ounce, and the price to buy Silver at $28.14 an ounce, as investor hopes for further accommodation from the Fed and the European Central Bank (ECB) have kept the Gold price above the $1,600 an ounce level. Based on technical charts, the rally in Gold looks positive for bulls, says Charlie Nedoss, of Kingsview Financial. "We tested the lows and made a double bottom at $1,605-06.
The Fed gave its promise to do more to bolster the economy "if needed" on Aug. 1, and the ECB gave its pledge in July, to do “whatever it takes” to preserve the euro. Gold prices continue to edge higher in thin trade as growth declines in China's factory output, retail sales and exports, raising investor hopes for additional stimulus from the world's second largest economy.
Economic data from China this week has revealed the lowest Consumer Price Index (CPI) since January 2010. “Given the pledge by the central government to support growth in 2H 2012, market expects more monetary easing in the form of RRR (reserve requirement ratio) cuts, and higher bank lending to fund infrastructure projects, which would support Gold price,” said Sharps Pixley.
Precious metals could remain quiet as we work our way through August to the Fed symposium in Jackson Hole on the 31st, said TD Securities. The bank does however look for “fireworks” later this year, particularly if the central banks deliver more monetary accommodation. George Gero, of RBC Capital Markets Global Futures, said Gold is moving higher due to investor concerns about food inflation, after the U.S. Department of Agriculture released a report on Friday revising downward its estimate of the corn crop amid a devastating drought now plaguing America's growers.
“Years ago, we used to say look at the [soy] beans let’s buy some Silver,” Gero said.”That’s because if food prices start to move up and ethanol becomes more expensive, with corn…it is somewhat inflationary.” As we head into the weekend, Gold prices look set to end the week higher for the second time in the last three weeks. Protect your wealth and your retirement, during these times of economic and geopolitical uncertainty, by investing in physical Gold and Silver bullion.
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