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Gold Futures Prices 14 Oct 2010

The December gold futures contract surged higher once again on the daily chart ending with as a wide spread up candle which just failed to touch the $1380 per ounce price handle before closing lower at $1371 per ounce, further extending the bullish trend for gold once again.  This bullish momentum has spilled over into this morning London gold trading session with the market higher once again and trading at time of writing at $1381 per ounce, up more than $11 on the day and just short of the $1388 all time high.  The trend higher continues to find excellent support from both the 9 and 14 day moving averages and with the 40 day also pointing sharply higher the longer term outlook remains firmly positive for gold.  In addition to the strong technical picture gold is also benefitting from the weakness in the US dollar, triggered by the recent FED announcement regarding QE2, and as such, is likely to climb higher still as investors seek more secure asset classes for their investments, a trend that is also pulling silver higher.  Our longer term target remains $1450 per ounce, although Goldman Sachs has recently revised their forecast to $1650 per ounce by next year.