A report released by one investment house states that despite gold futures potentially sinking as low as $1,325 per troy ounce, the precious metal is likely to rally. Barclays Capital analysts believe gold futures will supersede the $1,444.95 per troy ounce record price notched March 7 and surge as high as $1,500 per troy ounce.
"Failure to hold above support in the $1,390 area was not unexpected," according to the report. "We would look to buy any dips toward support in the $1,325 area. Our greater view remains bullish."
On Wednesday morning, gold futures returned to prices north of $1,400 per troy ounce. Just prior to 8:30 a.m., gold futures were up 0.79 percent, an $11 climb to $1,403.80 per troy ounce.
The increase marks the precious metal's first gain in about five days. The surge is attributable to ongoing Middle East anti-government protests and fallout from the most destructive earthquake yet to affect Japan, which includes a potential nuclear disaster.
"A close back above $1,405 would encourage our bullish view, although breaking above $1,435 is needed to confirm new highs through $1,445," the report states. "Breaking below the 50- and 100-day averages near $1,380 would increase the risk of a deeper fall toward $1,360."
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