The strengthening of the dollar and rumors of China tightening monetary policy has pushed gold prices down. Some see this as a beginning of a correction for a ‘bubble’ in the gold market, yet many analysts see a continuing positive climate for gold.
Economix reports Gold is at a record only if you fail to adjust for inflation.
Reuters reports U.S. gold futures jumped more than 1 percent on Thursday.
The Wall Street Journal reports that U.S. economic data and a stronger dollar weighed on Comex gold prices.
Reuters reports that on Friday, Gold was steady in European trading.
Some analysts have pointed out that gold has few end users and a healthy above-ground supply, so why has it shown so much price strength in the last few years?
Gold prices traditionally rally off the summer lows in September as many players come back to the market. And if this year holds true to that seasonality, next month might turn out to be “a good September.”
Many bullish analysts point to plenty of support for higher prices coming from safe-haven concerns. It’s these concerns, rather than pure supply/demand fundamentals, that have brought prices 13 percent higher in 2010, which gives many an eternal pessimist reason to warn the gold market may be experiencing a bubble waiting to burst.
: Dig Media recently conducted its Resources Investing News 2010 Survey to gauge the interests of its readers and gain insight into investors’ perception of the markets. Perhaps most telling was that nearly 69 percent of respondents said they believe the price of gold will reach $1500 before the end of 2010.
After hitting an all-time record high, the price of gold edged back down Thursday. Precious metals analysts are blowing off the break as little more than a bit of profit-taking or a short breather before gold prices continue their upward climb on fear and uncertainty in the markets, which has been pushing investors into safe-haven assets.
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