Published: 4/08/2011 at 12:00 AM
· Newspaper section: Business
Gold prices may be due for a correction after being driven up by high demand from central banks in Asia that are buying gold as a reserve, cautions Nuttatee Jutavarakul, the CEO of the local brokerage Classic Gold Futures.
Prices have pushed above US$1,650 an ounce from $1,450 in June and have almost reached the resistance level at $1,670, so investors should beware of a possible reversal on profit-taking, Miss Nuttatee said yesterday.
"Since the price has moved up so quickly, by more than $100 an ounce, it's possible the price could dive and go below $1,600 in a short period also," she said. "If investors are not cautious, they could face a huge loss."
However, she said long-term investors should continue to hold the asset since gold is expected to ride an upward trend through the latter half of the year on the back of the continuing weakening of the dollar in line with the US economy.
· Newspaper section: Business
Gold prices may be due for a correction after being driven up by high demand from central banks in Asia that are buying gold as a reserve, cautions Nuttatee Jutavarakul, the CEO of the local brokerage Classic Gold Futures.
Prices have pushed above US$1,650 an ounce from $1,450 in June and have almost reached the resistance level at $1,670, so investors should beware of a possible reversal on profit-taking, Miss Nuttatee said yesterday.
"Since the price has moved up so quickly, by more than $100 an ounce, it's possible the price could dive and go below $1,600 in a short period also," she said. "If investors are not cautious, they could face a huge loss."
However, she said long-term investors should continue to hold the asset since gold is expected to ride an upward trend through the latter half of the year on the back of the continuing weakening of the dollar in line with the US economy.
http://www.bangkokpost.com/business/economics/250186/gold-prices-may-correct-on-profit-taking
http://www.goldprice.org/spot-gold.html
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