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Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012.
Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012.
(Ajay Verma/Reuters)

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Feeling good about gold prices

As the investment sector most closely associated with apocalytic Mad Max scenarios, hyperinflation and other forms of economic mayhem, few markets are more dominated by sentiment than precious metals. It comes as no surprise, then, that technical analysis, which quantifies market sentiment, has proven to be effective at predicting the course of the gold price. Recent price activity in the gold market has supported the two technical trading indicators which suggest further upside ahead for the all-important spot price.