Gold prices may head toward $1,140 later this week as investors are expected to show continued interest in gold. Prices appear to have found a base around $1,100.

Prices could drop to around $1,080 in further selling, but right now investors appear likely to support prices around $1,100. Any drop below that would likely trigger fresh buying. Investment demand has been stable over the past week.

Combined exchange traded fund gold holdings were 56.36 million ounces as of 11 March, up 338,448 ounces from the end of February.

Economic data continues to show an emerging recovery. Investor concerns that the recovery could be derailed have and should be expected to keep providing support to gold prices. Many investors continue to be long gold.

The support for gold around $1,100 last week has encouraged short-term investors to put on fresh long positions. Prices around current levels may attract increased buying this week from both short-term and longer term investors.

The roll of gold futures contracts in the New York market also may begin to lend support to prices next week, although the contract remains more than two weeks away. This week the Federal Reserve will likely maintain its posture toward the economy and short-term interest rates.

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