Gold Prices Looking towards Upside: Expert
    2012-09-23 13:43:55     Xinhua      Web Editor: liuranran
The rising of gold prices has halted near its six-month high last week, said Gerhard Schubert, head of precious metals at Dubai's largest bank Emirates NBD, in his weekly analysis on global commodities published Saturday.
Audio

The rising of gold prices has halted near its six-month high last week, said Gerhard Schubert, head of precious metals at Dubai's largest bank Emirates NBD, in his weekly analysis on global commodities published Saturday.

"The gold market consolidated over the course of last week, with prices trading within relatively narrow boundaries," said Schubert. Gold prices closed Friday at 1,772.00 U.S. dollars per ounce, up by 2.00 dollars from last week. "The low trades were noted in the high 1,750's, while a high of 1,788 dollars was reached last Friday, before closing for the week nearly unchanged, " he added.

For the coming weeks, Schubert predicted the gold market will remain bullish. "The market, it seems, is still very much looking towards the upside but the amassing of long positions from long term holders and from short term speculative participants make us wary of a short term: It is a wash out," said Schubert.

Rising gold prices usually reflect fears of a global political instability as investors prefer to escape into gold as a safe haven in order to preserve their capital. Current instabilities are the risk of an escalation of the gold miners' strike in South Africa, a break-up of the 17-member states comprising Euro zone, the ongoing civil war in Syria and the threat of a war between Israel and Iran over Tehran's disputed nuclear program.

"It looks like everybody who has any reason wanting to be long is already long and the question is who or what will be the spark to initiate even more follow-on buying at this stage," added Schubert.

Since the outbreak of the global financial crisis in 2008, regarded as the trigger of the current Euro zone debt crisis, gold prices have soared by 142 percent.

Share

                  


CRIENGLISH.com claims the copyright of all material and information produced originally by our staff. All rights reserved. Reproduction of text for non-commercial purposes only is permitted provided that both the source and author are acknowledged and a notifying email is sent to us.

CRIENGLISH.com holds neither liability nor responsibility for materials attributed to any other source. Such information is provided as reportage and dissemination of information but does not necessarily reflect the opinion of or endorsement by CRI.

 
Audio Reports more »
Biz Life more »
Policy more »
Markets more »

• China
China News
Chinese Press
Diplomatic
Society
Gallery
• World
Asia-Pacific
Europe
Americas
Middle East
Africa
• Video
Traveller
Culture Heritage
Beyond Stardom
Dynamic China

Life 360
Panoramic Sports
• Radio
Highlights
Livecast
Ways to Listen
• Business
Audio
Markets
Editor's Choice
Biz Photo
Special Coverage
• Travel
Destinations
Editor's Pick
What's in
On the Road
• Showbiz
Chinese Films
Music & Stage
Art & Literature
Video
Photo Gallery
Special Coverage
• Language Learning
Ask Pingping and Jules
Chinese Studio
Elementary Chinese
Pop Charts
English News
English Snippets