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From wall streets reputable "market watch" great article on Gold...great news for NCM shareholders.


Gold prices poised for first weekly rise in four

“Gold has turned here for a good recovery bounce, as the technicals are extremely oversold, leading to a run into the mid/upper $1,300 in coming weeks,” wrote Felix Zulauf, president of Zulauf Asset Management, in a report for Itaú BBA.

The metal’s best week since the end of June came in part as the U.S. dollar sharply dropped following indication by Federal Reserve Chairman Bernanke that the central bank isn’t in a hurry to raise interest rates, even after the unemployment rate reaches the Fed’s target of 6.5%.

A weaker dollar helps dollar-denominated commodities by making them less expensive to buy for holders of other currencies. At the same time, analysts have said quantitative easing by the Fed and other central banks had underpinned a long-running rally in gold prices.

While gold has room to gain in the short-term, the “fundamentals are still not there to support a sustainable move, and after the big technical damage done, it will require a lot of time to do the repair work,” said Zulauf. “But the decline has been devastating, and the psychology resembles that of a major bottom. Perhaps fundamentals will kick in later.”

Gold futures have tumbled nearly 24% this year on worries the Fed will start winding down its bond-buying program and on continued gold sales from exchange-traded funds.

This week, Bloomberg reported that losses for hedge-fund manager John Paulson’s PFR Gold Fund had lost 65% year-to-date.

But the correction for gold may be close to ending, Deutsche Bank said this week.

In trading Friday, September silver SIU3 -1.11% gave up 16 cents, or 0.8%, to $19.80 an ounce. Silver on Thursday jumped 79 cents, or 4.1%, September copper HGU3 -0.90% slipped 3 cents, or 1%, to $3.15 a pound.

Platinum for October delivery fell $3.70, or 0.3%, to $1,403.90 an ounce, and September palladium gained $1.15 to $719.35 an ounce.

http://www.marketwatch.com/story/gold-prices-poised-for-first-weekly-rise-in-four-2013-07-12?link=MW_Nav_MA