Gold finally made its run above the magical $1,000 mark on Tuesday, September 8th, 2009 breaking free from a two-month trading range between $930 and $970 an ounce. For the third time, gold soared past the $1,000 level, causing the market to eye the precious metal's record of $1,033.90 reached in March 2008. While Citigroup is predicting a $2,000 scenario by next year due to continuing dollar weakness, a number of bullish factors, both near and long term, have converged to boost gold.
Gold rallied to $997.20 an ounce last week after an earlier slide in stock markets pushed it through key technical resistance levels of $962 - $976 triggering buy orders (Fig. 1). Currently, the $1000 - $1035 is a technical pivot point for gold. In dollar terms, gold broke the 1,000 resistance, with the next hurdle of February’s peak of $1,005 followed by the March 2008 record of $1,035. In euro and sterling terms, spot bullion broke above its 100 and 200-day moving averages, both considered as buying signals....Read More