Thursday, 12th October 2006 (3144 views)

Jewellers have snapped up gold supplies as prices failed to crack the $580 (£312) level on international markets on October 12th.

Spot gold prices started at $572.50 per ounce, although they rose to a high of $574.40 on the New York market before returning to $572.60. Analysts now predict that it is likely that the market price of gold will not break the $580 barrier in the near-future because of changing economic circumstances, especially following the slight recovery of the US currency.

A daily report from Investec Australia, quoted by Reuters, said: "Immediate resistance for gold now appears to be coming in at $580 where it has failed to crack three times in the past six days."

The statement added: "This coupled with a stronger US dollar suggests there is little reason to expect gold to break through that level soon. On the contrary one might expect a break of $570 and a re-test of the $560 level before long."

Meanwhile, gold futures on the Tokyo Commodity Exchange rose slightly as buyers and sellers continue to monitor the global oil prices and rumours that OPEC will not enforce an output cut.

 

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