gold prices outlook july 19 2011

gold prices outlook july 19 2011 ; The price of other precious metals also jumped as investors plumped for safe havens. Silver gained 2% to $40.11 an ounce, its highest since early May, as stock markets fell across Europe. At $1600.40 an ounce, gold has risen by nearly 8% since the start of July. Economists believe it will keep climbing and could spike sharply if the eurozone breaks up or America fails to raise its debt ceiling this week.

"If people seriously thought that there was a good chance that the euro itself would not survive, the associated flight to the safety of gold could easily see prices surge well above $2,000," said analysts at Capital Economics, who predict that gold will pass though the $2,000 mark in 2012.

I would add the $222 rally that occurred prior to these two when, after hitting new highs just above $1,225 in November 2009, gold dropped to $1,044 and then marched to the June 2010 zenith of $1,265. read Gold Prices Prediction to $1,750 end of 2011

Another analyst also said gold is targeting at around $1,700 an ounce on august 2011, based on the the Fibonacci numbers, a common technical tool used to predict the relationship between percentage changes and a sequence of important numbers. read Gold prices prediction August 2011

The focus turned now to the euro area leaders’ summit in Brussels on July 21 where investors had little hope that a new solution is to be proposed. The market also continued to react to the stress test results where eight lenders fell short of minimum requirements and 16 others need to bolster capital further.

Fears over the deadlock in the United States over raising the debt ceiling also persists which is further intensifying risk aversion and keeping the pessimism strong. The gold on Tuesday will be haunted by the same negativity and jitters as the focus remains on Thursday’s summit which will keep the upside support for the metal evident though volatility and fluctuations might be seen with gold trading at new all time records at the psychological $1600 mark.