Higher gold prices next week?
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By Jeremy Holcombe Contributing writer for Goldco Direct and End the Lie It seems to be the consensus of many that gold prices are going to spike even higher this next week, the third full week of February. Gold was at a standstill earlier this week, but with optimistic news out of Greece, gold actually went up a little bit to finish out this week. There have been reasons to believe that gold was about to spike up again, and of course the most popular reason surrounded the news of a close bailout deal involving Greece. However, there have been a number of other specifics stated as to why many investors think gold is going to spike upwards next week. Gold holding support at $1,700 an ounce, open interest building in the Comex gold futures and continued loose monetary policy should all contribute to gold spiking next week. Many investors, as stated above, have also expressed optimism that Monday’s meeting of the Eurozone finance ministers will come to some agreement to help bail out Greece prior to when the country must make a big bond payment or risk a default. Mike Zarembski, senior commodity analyst at optionsXpress, cited a technical-chart reason. “Gold prices continue to remain above the downtrend line drawn from the September 2011 highs. We may be seeing a ‘bull flag’ forming in the daily futures charts which, if verified, would further confirm the up-move seen in 2012,” he said. A lot has been happening with gold over the early parts of 2012. In January gold had its biggest one month gain in over 30 years. While gold has continued to perform strong in the early part of 2012, it is still thought that gold is going to make a serious run at $2,000 per ounce, but it is also thought that at some point gold will drop in price a bit before regaining a strong foothold and making that run. A lot of what happens in Greece before March 20 will play a big part as far as how fast we see gold make the rise to $2,000 per ounce or perhaps take a bit of a dip. Look for gold to remain strong through next week, and even spike in price. There has been a great deal of good news from Greece over the last week, so hopefully they will go ahead and pull the trigger and put to rest anymore notion that they may default. A default would not be ideal for the world’s economies, in this analyst’s opinion. The above article is for informational purposes only and is not a solicitation by End the Lie or Goldco Direct . It is the commentator’s opinion only and not intended for investment recommendations, and does not necessarily reflect the views of End the Lie or Goldco Direct . Any references to outside sources are believed to be accurate. Past performance is not a guarantee of future results. All commodities involve risk. Investors should consult their financial adviser before making any investment decisions.