Milton Financials: Gold continues its record breaking rally as Vietnam contemplates gold imports.

Oct. 7, 2010 - PRLog -- Spot gold moved into record territory in three successive sessions reaching $1.355.55 before easing slightly, Milton Financials data shows.

The central bank of Vietnam recently announced that it was considering granting permits to import gold if the gold price on the domestic market rose “unreasonably high.”

"People are going to focus on the fact that Asian physical market will be tight. Last time Vietnam opened the door to gold imports, gold went up $20. In percentage terms, it could translate into $30 today," a Singapore based trader told Milton Financials sources. "People have spent the last 24 hours taking profit. We saw a lot of profit-taking in gold and silver through yesterday and this morning in the 1,340s. These guys are looking to buy the dip at 1,320s. If we properly trade through $1,355, they might have to chase it."

Analysts are forecasting that gold is set to continue its bull run well into the New Year with some predicting a $1,500 per ounce by January.


The weaker dollar has been driving the price of bullion which has gone up 8% in the last month as economic uncertainty and speculation on further monetary easing by central banks send investors searching for safer investments to currencies and stocks and bonds.

Industry experts have told Milton Financials that after a recent report indicated that the U.S. has unexpectedly seen an increase in job losses in September the U.S. Federal Reserve may embark on a new round of monetary policy stimulus to support economic recovery by as soon as the beginning of November.

"By the year-end, most likely $1,400 will not be a difficult target," a Hong Kong based specialist said, “ there is resistance at $1,350 level, and there may be consolidation coming up which may pull gold down $20 to $30. But I'm still bullish."

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