Gold Price: The Week Ahead

 
on December 09 2012 6:05 PM

Gold Prices and Gold futures rose from a four-week low, Gold futures for February rose 0.2 % to $1,705.50 . Earlier, gold l touched $1,684.10, the lowest for a most-active contract since Nov. 6.

Gold declined 0.4 % this week. Silver March rose 0.1 % to $33.131.

Among other precious metals Silver fell 0.4 % this week. Platinum January gained 0.4 % to $1,607. This week, platinum rose 0.1 %. Palladium futures for March delivery climbed 0.1 % to $698 . This week, the price rose 1.4 %, the sixth straight increase and the longest rally since November 2010.

Physically backed funds held firm, with holdings of gold exchange-traded funds hitting record highs at 76.133 million ounces on Thursday.

Gold imports from Hong Kong to China, one of the world’s top bullion buyers, fell in October to their lowest in ten months, data showed on Friday.

Bullion buyers largely ignored a resurgent dollar which has risen for a third consecutive day and posted a 1.5 percent gain during that time.

This week we expect to see the $1750 resistance tested yet again. We think that resistance has now gone and $1800 is the next level in a move forward in the Gold Price. The trend is most certainly with the buyers and has been for a dozen years now, so buying is certainly something that we are very comfortable with in this marketplace.

$1700 is the significant support, so the fact that we have formed a hammer for the week isn’t overly surprising for us as we did expect the buyers to step in sooner or later.Money printing continues, the US Federal Reserve looking will certainly add to a Ponzi style massive position in the US Treasuries in the month of December, as well as possibly buying other assets as part of the 3rd round of quantitative easing.

Factors to Watch

U.S. consumer confidence fell more than forecast, fueling opinion that the Fed will buy more debtTR /University of Michigan preliminary sentiment index in December fell to a four-month low of 74.5,The Fed is buying $40 billion a month in mortgage-backed securities,U.S. added more jobs than expected last month Non-farm payrolls rise by 146,000 in November

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The Heffernan Group of Companies is a leading provider of consulting, technology, research and management services dedicated Governments, Funds, Listed Companies and High Net worth Individuals. Our clients call us when they need help with strategic, operational or market challenges. They look to us for honest, objective advice in delivering results. Read More

Shayne Heffernan Ph.D.Economist/Hedge Fund ManagerShayne Heffernan oversees the management of funds for institutions and high net worth individuals. He is also an active consultant working with Corporations around the World.He is recognized as one of the leading Economists in South East Asia, as well as the preeminent authority on ASEAN. His opinions and forecasts are widely read by decision makers in the region and Internationally.Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reached a peak of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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