Gold in Euros to Continue Hitting New Peaks: Technical Analysis

5 March 2010  Bloomberg.com

March 4 (Bloomberg) -- Gold priced in euros will continue setting records, Fortis Nederland said, citing trading patterns.

Gold denominated in the 16-nation currency reached an all- time high of 836.98 euros an ounce on March 2, nearing its medium-to-longer-term technical upside target of 900 euros and above, said Wallace Ng, Hong Kong-based executive director of commodity derivatives at Fortis Nederland NV.

“Because we are in uncharted territory, based purely on technical projections, the target price should be over 900,” he said in a telephone interview. “The weekly chart has formed a reliable bullish pattern called cup and handle, and when it broke the 790 neckline, it’s pointing at 900 and above.”

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