Gold prices rise on trading platforms
July 27th, 2010Gold increased today (July 27th) as prices briefly reached the 100-day moving average.
Reuters reports spot gold added $1.05 (67p) to $1,184.80 an ounce by 11:36 local time.
The news agency states gold had declined by close to $8 yesterday after strong US home sales data damaged its appeal on trading platforms as a safe haven commodity.
"I think definitely what we see is a bit of indecision now. I think we do need new impetus for people to go into gold and for people to be concerned about the economy again," said Ong Yi Ling, an investment analyst at Phillip Futures in Singapore.
He added he does not expect prices to fall below $1,175, referring to the two-month low hit last week.
Chae Un Soo, a Seoul-based trader with Korea Exchange Bank Futures, recently suggested in the longer term, gold has the potential to power higher again as signs of an economic rebound are likely to encourage investors to use it as an inflation hedge.
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