Gold Ends Higher, at 6-Week High, on Speculative Buying amid Weaker U.S. Dollar

Gold closed higher today and achieved another 6-weak high  on speculative buying activity due to a weakened dollar. The market has seen a resurgence of speculative buying and a lot of this is being caused by a weak U.S. Dollar index and strong technical data.  Discouraging  recent economic data from the 3 major economies: U.S., China and Japan have prompted investors to shy away from risky investments and are leaning toward the safe havens of the gold market.

As the dollar continues to slide in value against other major currencies, the value of gold investing increases.  This week should be an important barometer for the U.S. Dollar.  If it closes on Friday at or near its current low, it could prompt a continued downward slide, which, in turn, will most likely cause an upsurge in the price of gold as investors flock to the precious metal’s investment safety.

Gold’s technical data is looking bullish right now as gold is nearing a three-week uptrend in value right now.  Right now gold’s technical goal is to surpass the current resistance price of $1,250 per ounce.  If gold achieves this breakthrough price of $1,250. an ounce and can sustain this for a period of time, gold most likely will start heading toward the much-anticipated price of $1,300. per ounce.  This price has been predicted since late June and if things happen as predicted, this price should be attainable by the end of 2010.

As with any investment, you should consult the advice of your personal financial adviser.  If you would like more information on the merits of investing in gold or are interested in purchasing pure bullion gold coins, please feel free to contact me toll free at 1-888-877-GEMS (4367) or email me by clicking on the link below.

Submitted by Perry Lewin, Aug. 17, 2010

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