what will be the trend of gold in future?

Answer 1

here is an article which will tell you trend of gold in future


Gold futures continued their recent bounce Thursday, with traders and analysts citing improved physical demand and chart-based factors, with the metal getting an additional boost as oil kept recovering from its recent lows.

December gold rose $7.60 to settle at $610.90 an ounce on the Comex division of the New York Mercantile Exchange, while December silver added 3.5 cents to $11.735.

As Comex gold was closing, the Chicago Board of Trade's December gold futures were up $7.60 to $611 an ounce, while full-sized December silver was up 2.7 cents to $11.738.

Some of the selling pressure from earlier in the month abated when the Comex December futures' bottom of $576.60 on Sept. 15 remained above the June lows, said Tom O'Brien, analyst and editor of "The Gold Report" newsletter. Now, the contract is poised to return to $619, perhaps in the next couple of days, O'Brien said.

"When you hold support, the market has proven there are no more sellers in the market," he said.

Still, he said, buying didn't pick up significantly until Wednesday's rally. The December futures continued to rise Thursday to a peak of $612.40, the strongest level since Sept. 11.

Looking at the market on a fundamental basis, "Oct. 16 is the first holiday in India," O'Brien said, referring to the Diwali holiday. Then comes what is referred to as the "wedding season" in November and December. All of this is important for the market since data from 2005 show that India has a 23% share of the global gold-jewelry market, compared to 12% for the U.S., O'Brien said.

"Those jewelers come into the market right now to buy the gold," he said. "That's real support. That's real physical buying."

A gold trader also cited both technical strength and improving physical demand, but added that a recovery in crude oil since the beginning of the week has given gold an extra push higher.

"There has been good physical demand lasting for the last one-and-a-half to two weeks," he said. "That paved the way. And technically, we held the $570-ish area."

All of this helped the December futures bounce from the three-month low of $576.60 on Sept. 15 to a high of $597 on Monday, even though November crude oil had continued a two-month slide that took it to a 10-month low of $59.52 Monday. Crude has been recovering since then, and the November contract got as high as $64.03 Thursday. As gold was closing, November crude was up 50 cents to $63.46.

"Oil held a trendline. And when oil bounced, gold bounced," said the trader. "And because it had strong fundamentals - which is the physical demand - specs started to get slightly more positive on gold."

Technical momentum picked up as the futures got above $590 last week and $600 the last two days, the trader continued.

On a chart for open-outcry trading only, the Thursday high of $612.40 meant December gold had moved far into a chart gap left between the Sept. 8 low of $613.50 and the Sept. 11 high of $605. In fact, the futures on Thursday left a small gap between the pit-session low of $605.50 and Wednesday's high of $604.80.

While silver's gain Thursday was modest, O'Brien suggested that the metal technically has been stronger than gold for a while now. During a recent correction lower, December silver stopped at $10.55 on Sept. 15, well ahead of its June 14 low of $9.64.

"That is showing silver has a little more strength than gold," O'Brien said. However, silver had a heavy one-day sell-off of more than $1 on Sept. 11. Thus, he said, "it's going to take a little bit more work" for the metal to break out of a current band of resistance that he puts all the way from $11.20 to $12.32.

Like gold, December silver hit its strongest level since Sept. 11, peaking overnight at $11.86 an ounce.

Meanwhile, October platinum gained $7 to $1,146 an ounce and January rose $13 to $1,160. The rollover continues ahead of first notice day for October at the end of the month.

December palladium added $4.10 to $324.10 an ounce.

"They are just following oil up," said a Platinum Group Metals trader. "It's all on the back of oil right now. That's pulling gold and everything else up."

Answer 2

over the final hundred years, gold has somewhat saved %. with inflation, (under 3% in line with year) even nonetheless it has had risky swings the two up and down over shorter classes of time. while you're in the playing temper...reliable success. no longer inevitably a reliable long term investment, if we are finding at background. no longer an extremely reliable thank you to diversify the two. people have a tendency to look at useful metals, like gold, whilst issues have a tendency to be trending down in a marketplace/the financial gadget, although, whilst the marketplace is doing nicely, there is frequently a shift remote from useful steel into different sectors.

Answer 3

Gold rates depend on oil. It will go up until Christmas, but will surely fall in Jan 2007. Don't invest in gold at this moment!!!

Answer 4

Oil and Gold prices move in tandem. Keep a track on oil prices

Answer 5

The market looks soft for the next quarter, leveling out around June with a possible hike sometime around September depending on mine production and currency fluctuations.

Answer 6

i think it will rise incoming years,of course,but if u are talking about coming months i think it will rise till christmas and it may come down




i think this is the best opinion from my side..!