Find Out Why Trading Fundamentals Indicate A Possible Gold Coin Price Rise
February 10, 2010 – After two months of falling prices, trading fundamentals suggest an increase in gold coin prices is likely. Aram Shishmanian, Chief Executive Officer of the World Gold Council recently stated, “The current trading range should not be regarded as an overnight spike, but the result of a measured rise, supported by favorable and robust gold fundamentals." With steady, sustained growth and supporting demand, analysts still view a new price rally as a strong possibility.
This sentiment is echoed by Bob Gallagher, CEO of international gold producer New Gold. He sees gold as being in the middle of “a very exciting sector of the cycle. Whereas commodities like gold tend to have cycles in the 10-year range, we're probably only in about year six. So the fundamentals are very favorable for continued growth in gold pricing." Precious metals analyst Jeff Nichols agreed, recently opining to Mineweb that he still believes gold coin prices will rise to $1,500 per ounce by the end of 2010.
Based on Moving Average Convergence/Divergence figures, the Relative Strength Index, and other factors, many expect to see further price increases. What that means to the investor is that now is a good time to purchase, whether in certified gold coins or bullion. Many analysts feel that last week’s drop in spot prices was a signal that the market has reached its support level and is now ready to climb. Buying now would offer investors the opportunity to get the most out of their purchases, while trading fundamentals suggest that gold prices are ready to rise.
Michael Williams
Senior Staff Writer - Gold-Coin.com
