The spot price of gold is expected to target new highs during January 2006, technical analysts for JP Morgan wrote on Wednesday.
At 10.40am on Wednesday, gold was quoted at $509,05 a troy ounce, up $1,15/oz from the previous close.
On December 12, gold surged to $541,80/oz — its highest level since March 1981, when it fixed at $547,25/oz.
In January 1980 gold fixed at an all-time high of $850/oz.
“The price action over the last few days has been encouraging with the yellow metal pushing back through $510/oz, but again this has been in thin trade and we need to really see some substance behind it,” JP Morgan analysts wrote.
“What we want to see is pull-backs remaining corrective in nature and pretty shallow before pushing to new highs,” the analysts added. – I-Net Bridge