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Gold dives from record heights

posted 25 Aug 2011, 05:37 by Mpelembe Admin   [ updated 25 Aug 2011, 05:39 ]
Gold prices fall by more than $200 since record highs earlier this week, but analysts see rally on the horizon.
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WORLD-GOLD PRICE - After seven weeks of gains, gold is losing its glitter.

In morning trading on Thursday prices fell to a low of 1702 dollars an ounce.

That's down from a record high of more than 1900 dollars earlier this week.

But Joshua Raymond, an analyst at City Index, says the drop could be just a temporary blip.

JOSHUA RAYMOND, CHIEF MARKET STRATEGIST, CITY INDEX, SAYING:

"The key trend that would indicate a change in trend from bull to bear would be a concerted break below the 1476 level. If we break that and head back towards 1400 then that could indicate an actual change in trend, but if that doesn't happen, which to be honest with you considering the momentum that gold has at the moment, it seems like this is more of a correction than a change in trend."

Investors perceive gold to be a safer bet during times of financial uncertainty.

Sluggish U.S. growth and crisis in the euro zone have helped to push prices up by more than 400 dollars since July.

Ruairidh Villar, Reuters.

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