Friday, February 13, 2009

Precious metals in focus -- Gold falls for the first day in four

Gold and dollar denominated gold assets have been on the rise recently. People have long looked to the metal as the classic safe heaven investment in bad times, and now is no different. Check out Kitco's 1 year chart. As the financial world came crumbling down back in Oct-Nov 2008, Gold started to climb back up towards its high of $1011.25/ ounce.

A nice four day rally in gold came to a close today. Falling from the highest level in about seven months as investors decided to take some profits and readjust their investments into stocks and oil.

It will be interesting to see if gold can get back above $1000/ ounce. A lot of investors seem to think it will. I've been trying to keep up to date with gold (see posts on Jan 26 and Feb 2) and I think it will. I don't feel it will move above $1300 as the readers of Mineweb believe, but I definitely see it retesting the $980-1050 in the next few months.

Click here for today's Market Watch report on Gold