Spot Gold Over $1,300
California gold nugget
California gold nugget
As I write this spot gold is over $1307!
The gold price is making new highs as the end of the third quarter was forcing traders to rebalance their gold positions.
A weakening U.S. dollar index is providing a booster for the gold market bulls.
Gold is the ultimate safe haven and as the economy stumbles, demand for gold has grown. That’s been the case for almost a decade. In the second quarter of 2010, for instance, the economic indicators were down and gold demand was up 36%.
Investors are concerned. Not only did the economy falter this month, but the stock market declined as well. This has fueled uncertainty about the government’s policies, the potential for a “double dip” recession, and the danger of a deflationary period.
Gold miners will return to hedging, according to 77 percent of participants in a survey at the London Bullion Market Association conference in Berlin today. Some companies such as AngloGold Ashanti Ltd. have reduced or eliminated hedges, betting that prices will continue to climb.
The US dollar quandary is easy to understand. Huge debt, growing debt, and no politically feasible way to resolve it. With history as a guide, and political attitudes as they are, the road ahead for the dollar is somewhat predictable. More debt and more dollars, which should be supportive of gold’s ongoing long term price assent, followed by US debt saturation and dollar repudiation, potentially sending gold prices parabolic.
So, what is my bottom line opinion on the spot gold price? Obviously, gold will have its ups and downs along the way. That’s normal – but there’s every reason to believe that gold’s mega-uptrend is going to stay on track
pocket gram scale
En la carga de antivirus mi p?gina de poner alerta, por favor de verificaci?n.
Gracias
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