Gold prices fell sharply late last week, but could recover this week. Gold prices had been rising overall since late March, but could not forcefully break above $1,160 - $1,170 last week. The lack of follow-through buying as technical resistance levels were tested and an easing of investor interest in gold helped cap price gains. Prices fell sharply on Friday 16 April. A strengthening U.S. dollar aided the decline. Investors may take this recent price dip as a buying opportunity, although there may be caution until prices firmly build a base, most likely above $1,120 or $1,130. A price decline below these levels could trigger another round of selling, and gold may head toward $1,100. That seems less likely than a rebound, however. While investment demand eased over the past week, the recent decline in gold prices could increase investor interest this week. Combined exchange traded fund (ETF) gold holdings were a record 57.34 million ounces as of 15 April, up 162,470 ounces from the end of the previous week. The prior week, ending 9 April, combined ETF gold holding had risen 326,137 ounces from the previous week.

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