by Jan Skoyles, TheRealAsset.co.uk
Following last week’s near 5% rise, the gold price looks set to gain further this week posting an estimated 0.5% gain. Despite popping over $1,300 briefly this week it does not appear to want to finish the week on quite such a positive note as those looking to buy gold adopt a wait-and-see approach.
Despite it appearing during the week that Bernanke would be leading the gold price, it looks as though the yellow metal can ignore him for a while as Japan’s election takes centre stage. Ahead of this weekend’s upper house election, speculative buying and a weaker yen saw Tokyo’s gold futures rally yesterday, with the largest contract rallying to a four-week peak.
The rush into gold investment, from Japan, is partly over concerns to changes in the tax system which will go ahead if the Liberal Democratic Party (LDP) and its New Komeito Party (NKP) coalition partner win the election, which they are expected to do.
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