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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (59109)	12/1/2006 12:10:26 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

Chartists see gold and silver scaling new peaks venerdì, 1 dicembre 2006 2.55 138 Versione per stampa By Atul Prakash LONDON (Reuters) - Gold is expected to close the year on a stronger note and has potential to set new highs in 2007, but the market will continue to remain choppy in the near term, chartists said on Friday. "I think we are going to go back initially to the $690-an-ounce area and at some stage to revisit that peak (set) in May this year," said independent metals analyst Cliff Green. "There would still be plenty of short-term dips in this market," he said, but added that any near-term weakness should be aggressively bought. Gold climbed to a 16-week high of $648.60 an ounce on Friday on a dollar weakness, but slipped to $644.50/645.25 by 1:30 p.m., down from $647.20/648.20 in New York late on Thursday. Gold rallied to a 26-year high of $730 in mid-May as funds poured money into commodities amid worries about rising energy costs, tensions in the Middle East and uncertainties in the dollar's outlook. It hit an all-time high of $850 an ounce in January 1980. Robin Wilkin, technical analyst at J.P. Morgan, said gold's broad trading range of $550-$700 in 2006 was going to give way for a move towards the record high. "(But) half of the problem is that a lot of gamma trading is going on. So every time it rallies, all the options guys are just selling loads and it's dampening the effect," he added. Gamma trading refers to dealers covering their options exposure as a contract moves towards maturity. Some chartists predicted that gold would trade in a range in the coming months before moving higher. "You have got potentially further consolidation in the first quarter, but beyond that look for further upside," said MacNeil Curry, technical analyst at Barclays Capital. Continued ... borsaitaliana.reuters.it