Will the gold price push through the $450 barrier?
When will the gold price get past the $450 an ouce mark? Will it in the near future? It seems to constantly approach the $445-$450 mark but never break through it.
Most likely if it does surpass $450 for more then a few days, investor confidence will go up and then it should stay above $450 for the long term.
As the interest rates rise, so does gold, and right now it looks like rates may rise in the near future.
Shares of gold stocks got a significant boost in afternoon trading Wednesday, as investors sought a safe haven from equities vulnerable to inflation.
A number of gold mining companies saw shares rise rally in afternoon trading on the New York Stock Exchange. Gold Fields Ltd. led the pack up $1.11, or 8.2 percent, to $14.59, on twice its average daily volume. Agnico-Eagle Mines Ltd. rose 92 cents, or 6.7 percent, to $14.75, and Glamis Gold Ltd. jumed $1.25, or 5.7 percent to $23.04.
"Gold stocks typically follow gold prices rapidly, and when there's mounting concern about inflation, it tends to drive speculative interest in gold," BMO Nesbitt Burns analyst Geoff Stanley said in an interview. "We are also in a seasonally strong trading pattern on gold. In the lead up to the holiday season, you tend to see increased demand, through the fourth quarter, and the first quarter you may see weakness."
Gold dealers in London fixed a recommended price of $477.80 bid per troy ounce in late trading, up from $467.90 on Tuesday. On the New York Mercantile Exchange, gold jumped 7.6 percent to $480.40 a troy ounce Wednesday afternoon.
The stock activity also came on the heels of published reports suggesting both the South African and Russian Central banks may increase their gold holdings. Investors believe that gold will increase up to $500 per ounce.
Gold hit a fresh 18-year high on Friday as investors bet on further price rises as the metal edged closer towards the key $500-an-ounce level.
Traders said that Japanese investors were buying bullion as a hedge against deflation after the country’s finance minister warned that mild deflation “still persists”.
“If your assets are falling, it helps to maintain asset value by holding gold,” said James Moore, precious metals analyst at TheBullionDesk.com.
Although trade was thin and volatile, spot gold hit a peak of $497.02 an ounce, before easing slightly to $496.30, up $3.30.
Thursday, January 12, 2006
Gold Price going to $850 before the end of March 2006
With gold prices hitting 25 year highs, perhaps you are thinking now might be a good time to sell those Krugerrands, Canadian Gold Maple Leafs or American Gold Eagles you have tucked away.
Before you call up your gold dealer and get a price for your gold coins you might want to read what James Turk the author of the Freemarket Gold & Money Report is telling his readers in his most recent newsletters.
James Turk made this gold price prediction in his January newsletter:
"I do not anticipate gold will again trade below $500 ever. In other words, gold prices in the $400s are history, just like gold prices in the $300s are history."
Since the gold price broke above $500 it has risen almost 10% in a few short weeks.
James Turk's forecast comes at a time when many other so called experts on gold are calling for a top in the gold price. No doubt they will be proven wrong, just like they were proven wrong when they called for a gold price correction many times before, at prices much lower than today's gold price.
James Turk's gold price prediction for 2006 is for a new record high for gold above $850. However, what is even more interesting is what Turk said in his most recent newsletter, "I am now thinking that we might see that new record high before the end of March." wrote Turk.
So perhaps now is not such a great time to sell those gold coins after all. As James Turk told his readers "get ready for some huge and exciting fireworks."
Not unless the Hunt Brothers get back into the act
Market forces would never support such a dramatic rise. If gold even approached $600 by the end of March, there'd be such a flurry of profit-taking that a serious retracement would be inevitable.
$850 may be in gold's future, but comments like the above are purely designed to tittilate speculators and drive a short-term spike... who knows... it may work!
08-18-2005, 07:46 PM
Will the gold price push through the $450 barrier?
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