Gold to Rise to $1,850 On Inflation and Currency Debasement
By: GoldCore
Market Oracle
Mar 23, 2012
Hopes that the US economy is recovering and that the Eurozone debt debacle is over has led to increased risk appetite in recent weeks. This sent gold to a 2 month low yesterday.
Gold has fallen 2.8% so far in March. This has been attributed to Fed Chairman Bernanke denying that QE will take place.
Investors will be watching the fund flows to see if large institutions and hedge funds are increasing or reducing allocations to gold ETF’s which could influence prices.
ETF gold demand has remained strong and “sticky” showing that most buyers are long term and passive in nature and not speculators, traders or paper players who use the COMEX and futures markets to get exposure to gold.
Technicals: Euro Gold Testing Support at 200 DMA – EUR 1,239/oz
Gold’s technicals remain poor and prices are heading for their fourth straight week of losses. This is particularly the case in US dollar terms due to the recent period of dollar strength.
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