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Bannockburn: New high in gold ‘looks likely, but it may be marginal’

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(Kitco News) - Gold prices may rise to new highs but not by much, said Bannockburn Global Forex over the weekend in an assessment of the short-time prospects for a number of markets. Gold rose by around $45 last week and posted a first weekly close above $1,700 an ounce. A multiyear high was set on April 14, near $1,747.40, Bannockburn pointed out. The Moving Average Convergence Divergence trend-following momentum indicator is rising in “overextended territory”, while the Slow Stochastic pulled back a bit and is set to cross back high, Bannockburn said. “A new high looks likely, but it may be marginal,” Bannockburn continued. “Many observers make it sound like gold is a one-way bet. If the markets turn sour again, gold rallies as a safe haven. And while stocks go up, so the argument goes, some buy gold as a hedge. Since breaking above $1,400, we thought the technical indicators pointed to $1,700, but now there seem to be increasing calls to $2,000.”

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