New Gold Turning Point on the Move

Penny on uptrend graph

(Kitco) – Gold price eased a little during early Monday trading, due to worries from the recovering pace of the US economy and increased gold ETF inflow. However, Gold price consolidates above averages, thus increasing the possibility of a new turning point and an uptrend formation.

Gold futures for April delivery was down by 0.27% easing from $1,324.70 to $1,320 per ounce, Gold price in the spot market was down by 0.06% by 12:33 Am GMT to reach $1,324.45 per ounce.

One of the world’s largest gold exchange-traded funds (ETFs), SPDR Gold Trust, raised its gold holdings to 798.31 tonnes from 795.61 tonnes.

Some analysts said the current gold prices are attracting new investors. Victor Thianpiriya, commodity analyst at ANZ Bank, said investors are starting to pay more attention to gold price, and taking interest in the gold market once again. Kelly Teoh, IG Markets strategist, said there is a shift in the market place, and some are returning back to trading gold.

Physical demand on gold combined with new longs entering the market support gold price and prevents it from falling. China alone imported over 1,015 tonnes of gold during 2013 coupled with Christmas and New Lunar Year demand from all over the world. Reports for Comex gold showed an increase in net longs to reach 90,942, a number exceeding the triple of 28,702 in Christmas Eve.

Gold price chart supports the analysts view. Comex April gold price moved above most moving averages. The 10-day moving average is at $1,308.90, 20-day moving average at $1,281.80, 50-day moving average at $1,251.50 while the 100-day average $1,270.90. Gold technical charts will be a major player in attracting more investors back to the gold market.