Gold price breaks through key resistance
Peter Walden, News Editor
15 Oct 2015, 12:21 p.m.
The gold price has broken through the key resistance level of $1170 per ounce and now looks likely to finish the year in positive territory for the first time in 3 years.
Yesterday in New York the gold price settled at $1,188 per ounce, importantly above $1,170 per ounce level where previous rallies had stumbled.
The price is now trading above its 200 day moving average which may prove to be another positive indicator. The gold price surged after data confirmed retail sales in the U.S. had softened. WalMart, the largest retailer in the U.S, surprised the markets by announcing their profits would be likely drop 12% next year.
A number of technical analysts are now predicting the gold price will finish 2015 above $1,200 per ounce which equates to £790 per ounce. Saxo Bank and Daily FX are even more bullish forecasting the price will close 2015 above $1,250 per ounce.
A weakening U.S. dollar has boosted the price and spurred physical demand in both China and India. A falling dollar makes gold cheaper for many overseas consumers. The silver price has also benefited and is up over 11% in the last month.