While the price of the yellow metal has been reacting to the weaker dollar, there seems to be a battle going on between the bulls and bears trading gold futures, although this should not stop gold from re-testing $1 035 (R7 763) per ounce soon, according to a local commodities analyst. "Evidently, there is a determined effort from the commercials to drive the price of gold down as they continue to short the market, and the major bullion banks are now net short a massive position." "This play between the bulls and bears will either prompt more short-selling or a liquidation of the current short positions," says independent commodities analyst, Dave Levenstein. Liquidation of shorts means more buying and this could propel the price of gold higher in the short term. "No matter what, I believe we are soon going to see a re-test of $1 035," says Levenstein. He explains that the $1 000 level has become a major resistance level. "Although we have now seen gold trade above $1 000 level for the fifth time, we need to see it hold above here." "If this happens over the next week, the chances for gold moving to $1 100 become very likely," concludes the analyst. Gold was last trading at $997.85/oz from a previous close of $1 005.77. - I-Net Bridge

Source