Asian analysts bullish on gold

The region of the world with the most growth right now is almost certainly Asia. And one of the financial centers in Asia is Kuala Lumpur, the capital of Malaysia, a country with a very sophisticated financial services industry that has attracted a great deal of wealth from the oil-rich Arab world.

That’s why it is good to know that Malaysia‘s top analysts are bullish on gold:

Gold can still shine and analysts believe its price still has room to climb

“Gold is not overbought at all. We think it still has room to appreciate,” said Oversea-Chinese Banking Corp Ltd analyst Barnabas Gan.

“The US dollar was prior to this our safe haven pick but with the rollout of QE3 (quantitative easing) last week we have shifted our focus to gold as the preferred store of value.”

Everytime there is a surge, it is followed by profit-taking. This is called a correction. But the trend we see is that prices are on an uptrend,” Poh Kong Holdings Bhd executive director Ermin Seow said.

“Overall, the environment for gold is still quite bullish. Now that QE3 is out, many analysts believe gold can reach US$1,900, if not US$2000, by the end of the year,” Seow said.

OSK Research technical analyst Mohammad Ashraf Abu Bakar also believes the underlying price trend for gold points upwards, despite some selling. “The current resistance is pegged at US$1,800, the next level being US$1,900. The rally could continue for the next one month. “The selling pressure, if you look at it, has in fact not been able to keep prices down,” he said.

http://biz.thestar.com.my/news/story.asp?file=/2012/9/20/business/12051945&sec=business

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