"Smart Trade Group" - TraderChat - Gold Building For Surge?...

Online, April 15, 2010 (Newswire.com) - "Smart Trade Group" analysts believe that the price of gold is poised to rise as markets become more concerned over the implications of bond market supply approaching saturation levels and say that investors are growing less confident in the safe-haven status of the US dollar.

Huge amounts of money remain on the sidelines as evidenced by the low volumes being traded on the equity markets which suggests that the rally enjoyed therein is running out of steam and is heading for a pullback.

"Smart Trade Group" analysts believe that the "sugar rush" brought on by the positivity in March's US non-farm payrolls data is wearing off and investor attention is focusing on the possibility of monetary tightening by several central banks as well as the Greek debt crisis which was reignited this week by rumors the Greek government are trying to renegotiate the EU/IMF rescue package.

Gold's allure has increased as the US dollar, burdened by massive government spending and borrowing, becomes less attractive as a place to seek refuge in the event of a new bout of deleveraging by investors.

"Smart Trade Group" analysts believe that, technically, a surge beyond $1165.00 would represent a breakout and a possible run to $1280.

They also theorize that, in the event of a sell-off in both equities and commodities, gold's retracement would be considerably milder than that which it suffered following the collapse of Lehman's in 2008.