GOLD REPORT

Gold looks set to test the next support level of $845 to $850, he said in a note to clients.
"As expected, gold has once again experienced weakness in the summer doldrums, but a seasonal low is likely in the coming days, and the length of the consolidation since March should see a very sharp rally in gold's favored autumn months," said O'Byrne.
"Given [that] the financial and economic news has been as bad [as] if not worse than that out of the euro zone, the dollar rally is likely to be another dead-cat bounce," he warned. Thursday's U.S. data was "not encouraging with July sales and jobless numbers both disappointing."
So further dollar weakness is more than likely in the coming months, O'Byrne predicted, as the U.S. government "looks set to engage in a series of massive bailouts of banks, brokerages and possibly even car makers -- all of which face the possibility of insolvency."

BUY GOLD $865/55 area STOPLOSS $830 Target $1250

If gold can hold the $875-$876.50 area, "then it has a real good chance of rallying into December," said Dale Doelling, chief market technician at Trends In Commodities, in emailed comments. "The flip side is that near-term support areas are at $865 and $855 with major support at $848 [so] any close below $848 and I would call the bull market in gold over." the best way to protect yourself against a weaker dollar and the resulting inflation, along with persistent risks to the banking system, is to own physical goldBUY GOLD $860 with Stop Loss $830 Target $1250

GOLD MARKET UPDATE

"Gold is likely to remain on the defensive in the coming sessions," said James Moore, an analyst at TheBullionDesk.com, in a research note.
"While expectation of a U.S. rate hike have bolstered the dollar, the Fed is unlikely to make sharp rate increases for fear of damaging economic growth, and the question remains as to how many more financial institutions the Fed/Treasury is willing to bail out before it allows nature to run its course," Moore said.

Metals Cool, Looking for Support

The precious metals saw a cooling this week, due largely to the drop in oil prices and the strength that lended to the US Dollar and the Dow.Gold just broke below support at 959.48, and may be on its way to test 946.35. If the drop continues beyond that, then 929.13 is the next likely candidate for support. If we resume moving up, then 974.22 and 991.43 are the most likely resistance

GOLD REPORT

"With investor risk appetite showing a slight improvement and having posted aggressive gains last week, it comes as no surprise to see the metal correct," said James Moore, an analyst at TheBullionDesk.com.
He cast the current trading backdrop for gold in favorable terms.
"To avoid a deeper correction, gold needs to establish a base above the $953-$955 chart level, but given the backdrop of rising inflation and recessionary pressures and increased financial market jitters, we anticipate investors will view dips favorably, with the metal ultimately set to rechallenge $1,000," Moore said in a note.

BULLION MARKET UPDATE

The precious metals complex has been trading sideways since the beginning of the second quarter of this year. Gold has been in the $870-960 range. We believe this reflects the directionless performance in the US dollar as the two has been quite well correlated recently. Nevertheless we keep our bullish stance and we expect this range to be broken, and as it looks now, the probable outcome is to the upside. In general when the price has been in “balance” for a few months the break out is violent and the 1000usd target reached quickly. We need a daily close above $964 for August Gold (GCQ8) to trigger this move up. Equity market weakness and a potential escalation in geopolitical risk in the Middle East will be supportive to the metal.

Bullion Report

Gold has now on consecutive days tested the 100 day moving average at $915. Support remains at $915 and $900 should continue to provide strong support especially in the light of the increasing tensions with Iran. Although prices may need to consolidate at these levels prior to breaking through resistance at $945-$950 and rechallenging the psychological level of $1,000 per ounce.

Gold futures decline on higher dollar, weaker oil - Is this buying oppurtunity?

"I think we're seeing massive commodity liquidation today off the heels of a strong dollar and some general profit taking after yet another big commodity month in June," said Zachary Oxman, a senior trader at Wisdom Financial.
"Gold's recent ascent was quite rapid, and correction and consolidation can be expected," wrote Mark O'Byrne, director at Gold & Silver Investments Ltd., in a research report.
Gold prices should find support at the $915 and $900 levels, he said.
"Inflation will remain the topic du jour as the Bank of England follows the Fed and [European Central Bank] in trying to tread the dangerous tightrope of sharply declining growth and rising inflation or stagflation," O'Byrne said. James Steel, chief commodities analyst at HSBC expects gold prices to trade on a weak note this week. Buying Gold arround $900 for a target of $1000 in few weeks likely to be fruitful strategy.

GOLD WEEKLY UPDATE

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.

Gold jumped more than 4% yesterday through major resistances

Precious Metals gained some speed yesterday. August Gold (gcq8) jumped more than 4% and broke at the same time the $865-912 range holding for a month. It is a significant move as it opens the way to $935-940. A daily close above $967 will imply a retest of the $1000 level at least . We continue to prefer the Long side as we expectfurther USD weakness.

"There is the risk that while the Federal Reserve has to an extent 'talked the talk' regarding inflation, it is failing to 'walk the walk' by raising interest rates in order to combat the real threat posed by surging inflation," wrote Mark O'Byrne, executive director of Gold and Silver Investments Ltd., in a research note. Inflation in the U.S. remains higher than interest rates and continuing negative real interest rates could lead to an "inflationary spiral," he said. That "will likely lead to sharply increased investment demand for gold to hedge against burgeoning stagflation," O'Byrne said.

BUY GOLD $890 TARGET $1250

Timeframe: 1 day chart
Direction: Long
Price: $890
Target: $1250
Stop: below $840
comment: Gold likely to hit $1250 in 2008. Gold is benefiting from inflationary pressure and weakening dollar and ongoing geopolitical tensions, buoyant oil prices and credit crisis in the mortgage sector of US.

$1250/oz target for 2008

"We may find a bit of stickiness around here. But the big round figures are just numbers and sentiment is still very positive towards gold," Ross Norman, a director at TheBullionDesk.com, said.Gold may now need a period of consolidation, but it will soon resume its bull-run towards lifetime highs -- TheBullionDesk forecasts gold to reach a peak at $1,250 an ounce in 2008.Prices have already climbed by 20 percent since the start of the year, but it is still a long way from its real-term peaks. After adjusting for inflation, spot gold exceeded $2,300 an ounce ($850 in nominal terms) in January 1980, according to Lehman Brothers.According to the World Gold Council, the real-term three-year average for gold stands at $1,200 an ounce.The previous spike in 1980 was the direct result of high inflation due to strong oil prices and geopolitical tensions -- the Soviet invasion of Afghanistan and the impact of the Iranian revolution.

GOLD due for correction before it breaks $1000

I See $848 low which is already hitted and $1250 high for 2008 and $976 likely to be average price. Next support might be arround $937 followed by $913 further $890 solid ground and offcoarse owesome $850. But i think if you have cashed your money near $1000 and if waiting for dip then buying in 900-930 range probably be a smart trade as not to miss the $1250 rally. BEST OF LUCK

GOLD TARGET $1250/oz for 2008

Gold likely to rise in the coming session. Gold is benefiting from inflationary pressure and weakening dollar and ongoing geopolitical tensions, buoyant oil prices and credit crisis in the mortgage sector of US. Fed keeps on lowering rates from 5.25% to 3% so far. Expect 2.5% on 18th march 2008 and further by year end up to 2%. Gold likely to hit a high of $1250 in 2008 and low might be $840 and average price $976. <<<>>>

Gold to Pass Record in 2008 on Inflation, Survey Says

``The two stories for 2008 are going to be the subprime credit crisis and inflationary issues,'' said Ross Norman, director of London-based data provider TheBullionDesk.com and a former trader of physical bullion. Gold may climb to ``pretty well above $1,000 next year,'' he said.