Gold Prices Increase 2.6%, But Will it Last?

on April 22 2013 9:33 AM
Chinese Gold
Customers peruse gold in China. Reuters/China Daily

Despite gold increasing 2.6% to $1,430.70 an ounce over the weekend, many analysts, and investors fear that it will only be short lived before falling further. Although physical buying of gold, especially in Asia continues to increase, technical gold has been spotty at best.

Analysts and investors hope that gold will continue to increase and get back into the $1,500 an ounce range. Tim Riddell who is the head of ANZ Global Markets Research in Asia explains, "We really need to get back into the $1,500s to say that there's something more substantial taking place. The close above $1,400 may have taken the negative pressure out of gold in the near term. A close below that level will heighten the risks of new lows."

When it comes to stocks, Seabridge Gold is not having a good day as stocks fell 1.87%% to $10.48. Randgold Resources Limited continues to do well as stocks increased 1.84% to $71.56. In the ETFS sector, Junior Gold Miners ETF Market Vectors saw their stock increase 2.13% while Physical Asian Gold increased 2.12%.

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