The following is an excerpt from Myra P. Saefong | October 12, 2012 | MarketWatch.com |
SAN FRANCISCO (MarketWatch) — Gold is primed for a breakout.
Just a stone’s throw away from a record level, gold prices may be ready to break free from the trading range they’ve been stuck in for months.
“Concerns about overall global economic health have kept gold in a pretty tight trading range, but this is typical just before some type of breakout, up or down,” said Nathan Rowader, portfolio manager of the Forward Commodity Long/Short Strategy Fund FCOMX -1.09% . “Right now, the weight of the evidence points toward higher prices.”
For more than a year, gold futures GCZ2 -0.86% have been trading within a less than $400-an-ounce range — between an intraday high in electronic trading of $1,909, reached on Aug. 23, 2011, and an intraday low of around $1,525, seen on Dec. 29, 2011, according to the CME Group CME -0.37% .
Gold’s “return to near $1,800 is a sign that some rationality has returned to the market,” said Dawn Bennett, portfolio manager of the Bennett Group of Funds.
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