Gold prices 'will stay steady' - Monday 12th May 2008

A statement from Commodity Online has attested that, while gold markets may not see rocketing prices in the same vein as those witnessed in March, prices will stay steady and could marginally increase in the coming weeks.

According to the website, positive demand and prices in India, as well as the recent increases in oil prices, are helping to keep gold prices good.

However, the statement says that an inciting incident may drive prices up more quickly.

"We may see gold prices remain range bound. We need some vehicle, such as a rapid weakening of the dollar or movements in equity markets, to drive prices substantially higher. As long as oil prices remain firm, we will not see a big fall in gold prices," said the statement.

Investors in gold may be keeping a close eye on oil prices, which broke records last week and have risen by 25 per cent since the beginning of 2008. The increase may lead to a decrease in confidence in the economy and an increase in gold prices.

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Goldbug, 12 May '08

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