MUMBAI, Mar 27 - Gold Trading futures prices continued to rally on a speech to business economists, Bernanke said gains in the labor market since last fall could be due to the reversing of large layoffs from earlier in the recession, and that faster economic growth may be the key to further improvements.
“We cannot yet be sure that the recent pace of improvement in the labor market will be sustained,” he commented. Read more in The Fed . Investors took it as an indication that the central bank will go on with its ultra-loose monetary policy.
Gold tends to gain on talk of continued low interest rates, as the lower rates diminish the opportunity cost of owning gold, which needs to be stored, and unlike stocks and bonds, doesn’t pay dividends on interest.
Gold Spot was trading at USD 1689.
Gold Technical View : We have made things simpler for readers, we have incorporated a indicator overlaid in prices which gives the common investor the over all trend of the commodity at a glance.
On the price chart ,we have given the Cylcle strenght indicator for GOLD , Silver, Crude, Euro and Dow – and the way to interpret is as long as the indicator values is above 0% – a bullish ( strength) signal and below 0% reading indicated a bearish ( getting weaker) signal.
As you see the Gold has given a buy signals recently ( see previous posts and latest post here Gold Trading
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