Gold Price Forecast

Forecast: Rally to continue, but in a slower rate than 2010
1.) A Quick Summary of 2010 the Price Trend
1a.) Technical Summary:
2010 saw a continued rally in gold price which was up from USD1044.4 (1 Feb 2010) to USD1431.33 (6 Dec 2010), a 37% increase in 12 months. The trend stayed within the uptrend channel that started in 2001 when price's lowest price was USD253.5. Gold price has risen close USD1200 over the last 10 years, an increase of 565%, which has doubled in 2 years, from USD682 (Oct 2008).
2010 Q1 February gold price hit its lowest price, then the rally started until Dec 2010 when it reached new historical high at 1431.33. Q1 and Q3 were technical corrections seasons, and Q2 and Q4 were rally seasons.


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pressure to the euro, and ultimately affects gold and silver prices. Gold price trends often struggle as a result of a strengthening dollar. The dollar has gained strength this year due, in part, to the minimized potential for another round of qualitative easing in the U.S. Federal Reserve Chairman, Benjamin Bernanke, released comments that did not imply support for another round of quantitative easing in the U.S. The dollar value notched higher almost immediately versus a basket of other global currencies, and this action can often diminish the number of investors positioning with gold and silver. Since precious metals are often used as a hedge against a weaker dollar, prices for precious metals often suffer as the dollar gains strength. One can often observe precious metal gold and silver prices increase when other global currencies, like the euro, gain strength. The debt resolution and financial restructuring plan that positioned Greece to secure billions in bailout funding is an example of action that helped to support the euro which positively affected precious metal gold and silver prices. The euro gained strength and more investors positioned with gold and silver on a global scale. Gold receives attention as a way to diversify an investment portfolio and there are numerous ways to initiate the diversification process.

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