Gold looking for a new rally

Gold prices appear to have found a new support. Its not the strongest support, but its probably the best one you are going to get, so I'm taking it. Its also an opportune time to buy A1 Minerals at an opportune time since it broke support at 24c the other day. Sellers have also disappeared.

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Andrew Sheldon www.sheldonthinks.com

Gold destined to rally to $1300-1350/oz level

The gold price has reached technical resistance again, which augers well for the achievement of a new high. The lead usually somes from the NY-London trading session, so we might expect this to happen in overnight trading for Australians.

Based on the established trend, we might expect the gold price in this rally to reach the $1300-1350/oz level, though that will ultimately depend on the price action. In the short term, there is the prospect of the price falling back to $1225-1230, however given the small downside, its safe to say that gold will be breaking out tonight. This makes gold and silver, or related stocks good buying at current levels. I don't advise buying physical gold. For upside its either call options, CFDs or spec miners/project developers. With the prospect of Kevin Rudd backing down on the miners tax, it might be good to anticipate that move. This makes companies like A1 Minerals, Integra Mining, CRE.ASX more attractive.

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Andrew Sheldon www.sheldonthinks.com

Gold poised for further gains after consolidation

Gold is poised to break the $1250/oz mark, though it might not come for a few weeks yet. Clearly the growing concerns about the quality of sovereign (government) debt are going to worry fund managers in coming months. In any respect, the strength in the gold price is assured because who would count on central bankers raising interest rates to an extent which would curtail demand or liquidate credit. It will not happen. Instead we are looking at a Japanese-style recession....years of stagnant economic activity. Not as bad mind you. Japan was a more tragic case.

Interestingly, if you are interested in Japan, I hold great hope in the new PM of changing Japan. The most critical issue is whether the new PM will get a majority in both houses in July 2010. The upper house elections will be closely watched. See here for details. Global financial markets could do with some good news...though it will take years for fiscal reforms to make a difference, and for the new PM to prove himself.

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Andrew Sheldon www.sheldonthinks.com