Mar 18, 2013
Commodities Brief – Gold retakes 1600 level, commodities rally on increased demand outlook
Gold prices rebounded Monday after an earlier setback surrounding the drama currently unfolding in Cyprus, which sent the EUR plummeting against the USD. However, the mood recently has certainly been one that gold bulls welcome, as investors increased wagers on a commodity rally by the most in eight months as signs of a U.S. economic recovery bolstered the outlook for demand. At the time of writing, the yellow has stabilized above the key psychological 1600 level/former resistance at USD $1609.60 per oz., providing a new floor, from which investors can expect a modest recovery. Though gold ultimately is trading sideways currently, the next key resistance will be eyed at 1625, as well as the buildup to the FOMC Thursday – although no change in policy is expected.
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