Daryl Guppy
CNBC
July 6, 2010

The debate over where gold prices are headed has been an active one, with the bulls maintaining that fears of a slowing global economy will keep demand for the safe-haven investment strong; while the bears argue that the current price of gold, which has limited industrial use, is unsustainable in the long term.

  • A d v e r t i s e m e n t
  • {openx:49}

From a chartist perspective, we’re looking expecting a bullish scenario in the long term, but not without some selling pressure in the short term.

[…]

…the value is projected upwards, giving the next breakout target – $1,319.

[…]

But while prices may weaken in the near term, the underlying trend is strong, shown by the separation in the long term group of moving averages in the Guppy Multiple Moving Average indicator.

This suggests investors are strong buyers whenever there is a fall in the gold price, and that will continue to lend support to the market.

Full article here

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