As fears of a global swine flu pandemic have continued to grow both in Mexico and around the world the price of gold hit an “intra day” high yesterday of $918 having already been given a boost by last Friday’s revelation that China has been secretly raising its gold reserves by 75% since 2003, thereby confirming years of speculation that it has been stockpiling the metal.
The gold price is now just 8% below its all time high of $1000 last seen in February 2008. However, from a technical perspective the gold price has a number of price hurdles or “resistance” levels to overcome before we are likely to see this price once again. One of the biggest hurdles or resistance levels for the gold price is at the $960 price point which was last seen in March of this year.
In the meantime there are other equally compelling factors which may affect the price of gold in the short term and these include the increase in gold imports by India which may double this month from a year ago, as recent price dips revive demand for the Akshaya Tritiya festival when it is considered auspicious to buy gold. However, this year the demand seems to have translated into heavy demand for gold back ETF’s (exchange traded funds) rather than for the physical metal.
Full Story: http://www.huliq.com/1/80321/gold-rush-looks-set-continue