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February 22, 2010 – According to technical analysis performed by Chartered Market technician Daniel Bruno, gold investment could see a strong move as prices climb to $1,400 per ounce this year. Bruno, who advises banks and hedge funds, bases his prediction on projections made using the Fibonacci sequence, a mathematical theory which identifies price movements with a series of numerical ratios.

Gold “remains robust above its rising trend line,” say Bruno. The recent rebound from a three-month low on Feb. 5 is said to be a bullish signal, of which Bruno states, “We project about $1,400 within 12 months as long as the $1,000 level holds.” By hitting such a number gold, already up 0.6% for the year, would race past its all-time high of $1,226.56 per ounce and record its tenth consecutive year-to-year gain.

Technical analysis such as this is performed by investors and analysts who study charts and trends in order to find predictable changes in stability, pricing or direction of trading. Trades are frequently entered automatically for investors who buy and sell based on such calculations.

Bruno is not the only analyst forecasting a strong year for gold investment. Others have also predicted prices in the $1,350 to $1,500 range, citing recent price corrections, economic turmoil in places like Greece and inflation concerns in the United States, China, England and other countries.

Although each investor must make personal decisions, such predictions can be helpful while searching for trends. Using Fibonacci, Elliot Wave or similar calculations, determining Gold/Silver Ratios and other techniques can assist investors in deciding when to make additional gold investments. 

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info