-- Posted Friday, 20 March 2009 | Digg This Article
| Source: GoldSeek.com
April Gold: Open= 959.2 High=967.8 Low=946.7 Last= 952.9 -6.3
The price of gold fell slightly to end the week. With the US dollar managing a bounce due to weak European industrial production figures and the US stock markets trading lower, gold could do little more than consolidate large gains made of the past few days.
A big weekly reversal is left on the charts and the bulls enter next week with a modicum of control over the market. The Federal Reserve is going to try to inflate its way out of this deep recession, there is no doubt left about their intentions. Gold will likely to outperform other commodity markets in the near future as it maintains its value as a safe haven for capital.
The inherent risk of trying depressing the value of the dollar is that commodity prices will try to rebalance by moving higher. Unfortunately, this can serve to even further exacerbate the demand destruction we’re already seeing in consumers. If $4.00 gasoline caused people to change their consumption habits when the economy was stronger, what will $3.00 gasoline do to consumption when the economy is weakening? Certainly it will not increase demand.
With fears of a possible depression, a lost generation style stagnation, or hyper inflation, gold will continue to remain well supported as a general asset to hold during this uncertain time.
Review charts on these markets here www.britefutures.com. Remember that futures and options can be used for bullish or bearish positions; feel free to contact me to discuss trading strategies. Each contract/option = 100 ounces, a $1 move in a futures contract = $100.
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Thank you,
Thomas Hartmann
Altavest Worldwide Trading, Inc.
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-- Posted Friday, 20 March 2009 | Digg This Article | Source: GoldSeek.com
