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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37473)	5/21/2009 9:16:19 PM
From: LoneClone	Read Replies (1) \| Respond to of 193918

Chartists hint at fresh gold momentum; $1 000 possible miningweekly.com By: Reuters 20th May 2009 LONDON - Gold is poised for a fresh leg higher if the metal can hold its current dollar-related gains, and technical analysts even see scope for another assault on the $1 000 mark. Spot gold vaulted $940 an ounce for the first time since late March on Wednesday after overcoming fierce resistance at $933, as the dollar slid to multi-month lows against a basket of currencies. Technical analysts, who study historical chart patterns to determine future moves, are galvanised by the latest break out. "Gold does look like it has further to go on the upside, certainly if we can close up here ($935,50) tonight," said Phil Roberts, technical strategist at Barclays Capital in London. "Initially we'd look for a move to around $953/958. If we can close above $935,50, that would be a reasonably bullish signal and suggest that we might go higher still, towards $975," he said. Roberts also held firm with a bigger picture forecast for gold to eventually trek towards $1 500. "But it's one step at a time," he added. The dollar was hit on most fronts on Wednesday, stumbling to its lowest in almost 5 months against a basket of six major currencies, while the euro touched a high of $1,3794 - last seen in early January. Sellers of the dollar are betting on the possibility that the global economic downturn is abating, but gold watchers have yet to be convinced. CAUTION REIGNS While global stock markets have rallied ferociously, oil surged and the VIX equity market volatility - "fear" - index has softened, investors are still mindful of the potential for fresh shocks. Others are also making tactical investments, focused on potential inflationary risks attached to any recovery. WGC investment research manager Rozanna Wozniak told Reuters Television earlier she expects investment demand for gold to remain firm as investors seek a safe store of value for their money. "I have some concerns over how long these green shoots (of recovery) will last," she said. "I think overall the uncertainty is going to remain for a while yet." Germany's Commerzbank said a weekly close above $935,65 could lead gold to target $952,00/972,79. A breach of the latter level would bring February's high of $1 006 "directly into focus", the bank said in a note. Technical analysts at BNP Paribas agree that the medium term outlook for spot gold is now positive, and say prices could be poised to set new highs after breaking out a their downtrend earlier this month. In a note to clients, the bank said bullion's move from its April low of $865 an ounce could have the momentum to push through resistance at its March high of $967 and its February highs of $1 000/1 006, adding that the steady nature of the move was firmly in its favour. "Although missing the explosive nature of the October/February rise, what this type of creeping advance lacks in terms of excitement it makes up for by longer duration," it said. "Such an orderly, steady rise is often very sustainable." The bank said a break of key resistance at $967 could lead to a move back through previous highs at $1 006 and $1 030, opening scope to $1 045-1 095.