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March 8, 2010 – After closing strong last week, analysts are forecasting a promising new week for gold investment. Reaching $1,135.40 by the close on Friday, gold started today strong as the US dollar struggles against a rejuvenated euro. At 10:00 AM EST today, gold stands nearly even at $1,135.00, the US Dollar Index is down 0.270 at 80.16, and the euro is up to $1.3582.

According to the China Post, gold investment prices have broken 5, 10 and 20-day moving averages, and has been trading above the 200-day average for some time. The Post also reports, “Gold price may test this year’s high of $1,161.5 reached in January. If the price hurdles the $1,161.50 mark, it will challenge the $1,226, its highest level to date.” Analysts are saying that even if the price dips, it has strong support between $1,120 and $1,130 per ounce, suggesting downward movement would be minimal.

As the China Post reports, “analysts said prospects of gold price falling are slim, given the euro is expected to rise, now that Greece and Spain’s debt problems have seemingly been alleviated. Gold is in good shape when the euro is strong or the dollar is weak.”

Since there is price support in the $1,120s and gold is above most of its major moving averages, there is optimism that gold investment will continue to see increasing prices. With James Moore, an analyst at The Bullion Desk, reporting, “Risk appetite remains steady,” demand and fundamental support suggest continued strength. 

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info