May 22, 2009 - 8:00am
Gold was observed to held steady on Friday near a two-month high, due to the US dollar remaining weak and US data on jobless claims and business conditions denying hopes for a quick return to growth.
Gold has already risen about 2.6 per cent this week, and is expected to rise further, as current prices prompt some to take profit while others halt investment in gold-backed exchange-traded funds. Gold reached as high as $US955.95 on Thursday, its highest since March 23 of $US966.
Gold's relative strength index (RSI), a measure of whether the metal is overbought or oversold, has also remained at 76 at Thursday's close, which means it was overbought.
Some other factors affecting the gold prices is the Obama administration preparing to steer General Motors into bankruptcy; gold selling from India, the world's largest gold consumer, and Vietnam; possibility of the United States loosing its coveted triple-A credit rating; and growing US government debt prompting investors to sell dollar assets from stocks to bonds.
It should also be mentioned that the cash flowing into the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, has paused on May 13 for the first time since they began declining after hitting a record high on April 9.
Gold has already risen about 2.6 per cent this week, and is expected to rise further, as current prices prompt some to take profit while others halt investment in gold-backed exchange-traded funds. Gold reached as high as $US955.95 on Thursday, its highest since March 23 of $US966.
Gold's relative strength index (RSI), a measure of whether the metal is overbought or oversold, has also remained at 76 at Thursday's close, which means it was overbought.
Some other factors affecting the gold prices is the Obama administration preparing to steer General Motors into bankruptcy; gold selling from India, the world's largest gold consumer, and Vietnam; possibility of the United States loosing its coveted triple-A credit rating; and growing US government debt prompting investors to sell dollar assets from stocks to bonds.
It should also be mentioned that the cash flowing into the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, has paused on May 13 for the first time since they began declining after hitting a record high on April 9.