FXstreet.com (Barcelona) - Gold prices have resumed rally reaching a fresh 2009 high at 1,167 so far, in an uptrend that, according to the Saxo Bank Strategy Team, could reach to levels around $1,300 or higher.

According to the Saxo Bank Strategy Team, breach above 2008 high indicates that new rally has set up: We see the break above the 2008 high as a signal that a new rally has been initiated which could take the price of gold towards an initial target of USD 1.300 followed by a potential 5 year target of USD 1.500.

On the near term, however, the Saxo Bank Strategy Team warns about potential corrections, as Gold stands at overbought territory: Near term however gold has moved into an extreme overbought situation which has not been seen for many years and we urge new investors to be patient as a correction back towards USD 1,120 and maybe even USD 1,100 is increasingly likely.

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