Will the gold rally once again?

Published: 30 April, 2013 13:03

Gold price rallyIn the latest commodity trading news, all eyes seem to be focused on gold’s potential to rally once again after taking a massive pounding over the last ten days.

Early during Monday trading, prices rebounded back above the important resistance level of $1,400 and although this rise is still seen as a far cry from the $1,900 witnessed a few years ago, many commodity trading experts see this movement as a welcome shine that gold may be regaining some of its previous lustre.

Short term prospects for gold

Hedge funds and forex brokers seem more optimistic in the short-term prospects for gold to rally yet further and many are beginning to back off of the bearish perspectives that have dominated the precious metals markets recently. Many commodity traders may see this movement as a signal to opt-in for a short-term profit, as much of the news coming out of Europe may indicate a desire for the safe haven that gold has to offer.

Still, should the greenback return to a bullish position as many predict, we may see this mitigate the prospects of gold prices flirting with $1,450 or the important benchmark price of $1,500.

Crude oil and gasoline prices

In the energy sector, many astute traders feel that crude oil and gasoline prices are due for a massive fall. There are a few key reasons behind this mentality. The United States’ demand for oil is falling due to the implementation of more energy efficient vehicles.

If we then combine this with cheaper crude now available via North Dakota and Canada and a sluggish European economy, it becomes clear to appreciate that a global price decline may be underway. Furthermore, OPEC nations can afford such a decrease, as they can simply call on their cash reserves until prices rebound again.

Gold price movement going forward

The coming days and weeks ahead will be watched by online commodity traders closely in regards to the movement of these two benchmark economic indicators.

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