Bullish reversal most likely to be witnessed in Gold
On Friday, when dollar slid due to economic worries and signs of strengthening in investment demand as the recession deepened, it enhanced appeal of gold as an alternative investment. The futures contracts for Gold ended higher.
Since disruption turmoil in the financial markets and fears over the outlook for the global economy boost bullion's appeal, the demand for investment in the precious metal remains strong. In the recent times, demand for physical gold from ETFs has been a major factor supporting prices.
The Bank of Japan as the world's seventh largest holder of gold was overtaken by SPDR, Gold Trust, the world's largest gold backed ETF, in December.
The December gold futures for Comex fell lower than expected and in the previous update, it was specified that fall below $835-36 zone, dragged prices lower. Now the initial resistance will be seen at $858 followed by important resistance at $869/70.
It is quite possible in the coming session that bullishness will remain and prices will rise towards $920-25 levels, as long as the $815-20 zone holds attempts to decline.