Gold sets new record high over $1,260
As soon as investors think it is safe to invest in growth opportunities and more risky plays, economic concerns pop up somewhere in the world. The US is still trying to figure out if it is truly in economic recovery mode with job worries remaining and Europe is burdened with debt-ridden economies.
The same has been true for a few years now that the only real certainty about the global economic picture and investing is that there are no certainties. This reality is what has contributed to a long-running upward trend that has helped gold prices realize another new standard Friday (June 18) morning above $1,260.
After briefly exceeding this new barrier, gold prices have pulled back a bit in mid morning New York trade, but one ounce of gold still fetches $1,256.70 at the current gold price spot rate. This makes a roughly $8 gain for gold scheduled for August delivery
The dollar has been down a bit this week, especially against the Euro, which has surged over 5 pips as debt worries easy a bit in the European Union. Just as Americans start to get comfortable that the economy is recovering, jobs reports are released that show unemployment remains high and employers do not appear ready to ramp up payrolls.
Jobs had been expected to be the laggard in the recovery, but most analysts late in 2009 had said conditions would be improved by midway through 2010. That time is upon us and employers still seem hesitant to dive back into business expansion, rehiring of laid off workers, and hiring of additional staff.
Some analysts say near term gold prices may be peaking due to usually summer drops in physical demand from common buyers like India and China. However, this flattening of prices may be short-lived and demand could pick back up in the fall when gold becomes hot again for weddings, seasonal celebrations and other major activities.
Every time gold prices push to a new high it begs the question, â€œHow high can gold prices go?â€ No one really knows as analyst speculation has ranged anywhere from $2,000-5,000 per ounce within the next three to five years.
The state of the global economy is sure to be a major contributor to gold prices during that timeframe as it affects the willingness of investors to leave safer plays like gold, for more risky equity and currency trade.
Currency Articles - Dec 2, 2015 11:35 - 0 Comments
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