If physical demand remains lean and investors continue selling there is possibly for gold to visit $1,000 areas, however it looks hard. If investors reduce short selling the metal, prices can stabilize around $1,200 per troy ounce. BofA lowered its 2014 average Gold price forecast by 11% to $1,150 per troy ounce. Us economy is growing but its speed is not enough to cover inflation. If this situation continues gold buyers will be back into the market.
We observed few attempts to the upside in this week, we are saying this for last few days that stability above 1272 is necessary for higher prices but the price failed to stabilize above 50% correction at 1272.00 levels. Similarly selling pressure was unable to capture the gold price at its 38.2% correction at 1250.80.
Gold Price Forecast
Support for today is $1,251 and resistance for today is $1,265.