Gold prices could test $1,140 this week, and may even make a run toward $1,160. Gold headed toward $1,140 in the middle of last week, but profit-taking, technical selling, and a strengthening U.S. dollar all weighed on prices during the remainder of the week.

If gold is able to hold above $1,100, the decline toward this level could trigger increased investor and speculative demand this week.

On Friday 19 March the Reserve Bank of India unexpectedly raised interest rates, resulting in a strengthening rupee and lower gold prices in India.

This, too, could help boost investor demand this coming week. Demand for gold has been stable over the past week. Combined exchange traded fund gold holdings were 56.4 million ounces as of 18 March, little changed from the prior week.

Commodity funds and institutional investors meanwhile continue to hold large net long gold positions.

The roll of April gold futures contracts in the New York market, due for delivery starting at the end of this month, may provide added support to prices this week.

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