Tuesday September 08, 2009

Gold prices rise above $1000 level on overwhelming momentum

news.yahoo.com :

Gold prices powered through the $1,000 per ounce psychological barrier on Tuesday [8 Sep 2009], carried by a wave of pent-up technical momentum and dollar weakness, with some analysts eyeing last year's record high at $1,030.80. US COMEX gold futures for Dec 2009 delivery rose to $1,009.4. Gold prices have now made 3 attempts to rise and stay above $1,000. The market stayed above the key level for 1 day in Feb 2009 and 3 days in March 2008, when the record gold price of $1,030.80 was hit. Meanwhile, silver prices hit a 13-month high of $16.81 per ounce, and crude oil prices rose above $69 per barrel on NYMEX.

- Near-vertical rises may be awe-inspiring and all that, but someone like myself with a contrarian mindset always tends to get nervous whenever something like that happens. I will be more convinced if it can hold that key $1000 level and test it successfully as a support level, say for a week or two. If not, then it's just the proverbial flash in the pan.

The verdict will continue to be technically-driven momentum until proven otherwise. Of course, from a TA point of view, if it could test and maintain this critical level, we could draw a one-and-a-half-year line from Mar 2008 through to Sep 2009 and call it strong support. Let's see if that comes to pass.

See also :

1. Gold reaches record, breaching $900, on US interest rates
2. Gold rises to record $949.20 as oil sparks demand for inflation hedge
3. Gold and oil soar as inflation fears grow
4. Gold hits $1000 an ounce for the first time in history

(2009-09-08 20:33:58 SGT) [Biz] Permalink

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