Gold price still in an "uptrend", says expert

The price of gold is still in a long-term ’uptrend’, despite falling about 11 per cent since touching a record high in December.

This is according to managing director for Superfund Financial Singapore Aaron Smith, who said in an interview with Bloomberg that the current decrease ’is simply a normal pullback’ - something that may encourage private wealth investors who have purchased the precious metal.

’Gold is still above its one-year trend line and considerably above its 150-day moving average. The long-term momentum is still there,’ he stated.

According to the news source, bullion was priced at $1,090.30 (£671.77) per ounce at 06:13 GMT in London, higher than the current 150-day moving average.

This month, its price has been largely unchanged, as the strengthening dollar has limited opportunities for the metal to gain in value.

On December 2nd, spot gold hit $1,213.20 per ounce as investors rushed to protect their funds from the US currency, which was falling at the time.

Jeremy Beckwith, chief investment officer, Kleinwort Benson, commented: ’$1,000 was a major psychological level for gold, which it finally broke in October of 2009. From there it rallied sharply to over $1200 before entering its current period of consolidation.

We would see gold making its next low in the $1025-1075 range, before resuming its bull trend towards a long term target above $1,500.

It is actually performing relatively well given the recovery we are seeing in economies, the anticipated reversal of easy monetary policies and the strength of the dollar, all of which could be expected to weaken the price of gold.’ADNFCR-2318-ID-19583729-ADNFCR