One Analysis Predicts $1,074 Spot Price In The Near Future
March 24, 2010 - As Gold started to approach the $1100 support line, is trading near a three week low, and has no strong indicators that would suggest $1100 can hold, many analyses are all ready tiring to predict the floor. In a recent interview with Bloomburg.com Alex Randolph, technical strategist at Commerzbank in London, made public his prediction.
“We expect to see further weakness this week, provided that last week’s $1,134 high point caps. We remain medium-term neutral as long as the gold price stays below the three-month resistance line at $1,128.90 and the 50 percent Fibonacci level at $1,135.50, but above the $1,073.85 January low point.”
Technical Analysis use a series of historic data and mathematical formulas determine future pricing of stock, bonds, currencies, and commodities such as Gold. This is opposed to fundamental analysis that use current news and over all public sentiment to achieve their positions.
Most Technical Analysis believe that the market already has fundamental price fluctuations built into and any price spikes do to fundamental news will correct. The majority of analysis now days give credence to both technical and fundamental analysis, although they tend to favor one over the other, sighting that it would be ridicules in today’s fast paced investment world not to take advantage of every tool available.
Stewart Lawson
Senior Staff Writer - Gold-Coin.com
