Friday, 2nd April 2004 (2628 views)

US gold prices have reached a 12-week high, despite continuing global security fears and a weakened dollar.

The financial markets were further hit by a weaker than expected report on manufacturing activity and a swiftly-denied rumour that Federal Reserve chairman, Alan Greenspan, suffered a heart attack.

The lower dollar helped to boost gold trading to foreign countries, while declining consumer confidence and rising oil prices saw investors turn to gold for stability, Business Line reports.

The US consumer confidence index fell to 88.3 in March from 88.5 in February as concern about terror attacks and continued violence in Iraq continued. This week's release of the minutes of an OPEC meeting on oil production, the European Central Bank's interest rate decision and US Jobs Data are expected to further boost gold sales.

Analysts predict prices will head higher, with the possibility of minor correction ahead. Supports are at $423, 417 and 405. Resistances are at $428, 430.50 and 442 respectively. Prices are higher than the short- term 9-day EMA at $418 and the medium term 25-day EMA is at $411.

 

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