A weaker US dollar and equity markets still on a sell mode provided a boost to gold prices this week, with August gold (gcq8) price rallying to $950, a one month high. We believe the US strength we witnessed on Thursday after Trichet comments was a knee-jerk reaction, we expect the US dollar to stay weak in the coming months and subsequently the 1.60 level against euro to go. We therefore maintain our bullish outlook for Gold and a retest of the $1000 level in the coming weeks.
More short term as Long as August Gold (gcq8/ygq8/zgq8) stays above $923 are we are looking for Gold to test the $953 area and subsequently $967 for next week as target.
More short term as Long as August Gold (gcq8/ygq8/zgq8) stays above $923 are we are looking for Gold to test the $953 area and subsequently $967 for next week as target.
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