Gold recovers ground after profit-taking - Wednesday 14th November 2007

Gold prices have today (November 13th) reversed part of yesterday's fall, climbing back more than 1.5 per cent from overnight lows.

But while spot gold held firm above $800, gold for December delivery fell again today, slipping $5.70 to $802 per ounce on the New York Mercantile Exchange.

The resistance of spot gold suggested, however, that the dip in value seen on Monday was largely a corrective one and not the sign of a bear run – with profit-taking momentarily hitting gold, but bargain-hunters today showing a new thirst for the metal.

Zachary Oxman, a senior trader at Wisdom Financial, told Marketwatch that the metal's prospects had changed slightly, stating: "Technically, gold has broken through some near-term support."

He added, however, that new rises could soon occur: "Long term, I definitely see gold higher as well as silver against a dollar that should continue to weaken."

A factor that could drive gold temporarily lower is the crude-oil outlook – with the International Energy Agency today cutting its estimates for global oil demand over the coming year.
Goldbug, 14 Nov '07

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