Gold Approaching All Time Highs

Published on Wednesday, 25 August 2010 12:30 Written by Christian Paolinetti

New York, Aug 25^th (TradersHuddle.com) – Gold prices were higher this morning as investors continue to bid up the price of gold amid the economic uncertainties that have been haunting the market for the past few weeks.

Gold has been very resilient the last couple of weeks, with the price action of the marquee Gold ETF, the Spider Gold Trust (NYSE:GLD) or GLD, breaking above the 50 day moving average at $118.20 and spiking to reach a high of $120.51 before pulling back towards the high $118s, never moving back below its 50 day moving average area.

Investors have been positioning for the last few weeks for September, which is historically the best month to own gold. Price action appears to be confirming the September gold rush, as the GLD is approaching all time highs at $123 and most importantly, there is a crossover developing in the 50 day exponential and simple moving averages. Usually the crossover indicates an imminent change in trend and increasing momentum.

Goldman Sachs (NYSE:GS) upped its 6 month Gold forecast to $1,300/toz, as they believed that the recent sell-off from the June highs, have left speculative long positions in gold in oversold levels relative to US real interest rates, which sets the stage for a probable rally in Gold.

Leverage ETFs are seeing increase in money flows as investors look to profit on the latest gold rush one of the leverage ETFs is the Deutsche Bank AG DB Gold Double Long ETN (NYSE:DGP)