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Monday, 22nd May 2006 (4325 views)

Gold futures in the US fell to their lowest level this month at $643.50 an ounce on the New York Stock Exchange today (May 22).

The US dollar continues to show strength on the markets following recent months of declining value, which saw gold prices soar.

Prices of the precious metal have declined recently and had previously dropped by 1.5 per cent to finish at $648 an ounce before further trading in New York today.

Analysts remain optimistic on gold despite these recent setbacks and predict that it could still reach what were thought to be outrageous targets when first voiced a few months ago.

"Despite some speculating the bull-run for gold is over, in my view there are still far too many factors in favour [of gold prices rising]," TheBullionDesk.com analyst, James Moore told clients.

"$850 remains a realistic target for later in the year as investment demand continues to swell prices," he added.

The gold price was up to a 26-year high of $730 ten days ago but has since fallen back to its current levels as the US dollar rose in value and took some of the shine off recent precious metal gains.

 

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