Gold prices settle above $1,400
Gold prices have settled above the $1,400 mark and are making a third run at maintaining this level to close out 2010.
One ounce of gold currently (December 29) nets $1,412.70 in mid-afternoon New York trade, its highest level since it reached $1,426 on December 7th.
Gold closed Tuesday with a remarkable gain of $22.10 to close at $1,406.20. Gold speculators have remained relatively silent for much of December.
After falling swiftly from the December 7th high, prices have stayed in about a $45 price range between $1,360 and $1,405.
Typically considered the safe money investment, gold is finishing 2010 on a high note even as stock investors have pushed the Dow to its highest mark of the year in Wednesday trade. After breaching 11,620, the Dow currently sits at 11,617.
As many analysts have forecasted, gold prices could see strong gains if traders are stilling buying the precious commodity in spite of improving economic conditions.
The recovery is still moving at a modest pace, but most signs in housing and jobs have been positive in recent weeks.
It appears gold buyers are looking at the bigger picture and opting for gold in the medium-to-long term as opposed to banking on significant improvements in the global marketplace.
Along with uncertainty on the US economic front, continued debt troubles in Europe have prompted speculators to remain in conservative mode.
While seeking diversification with stocks and other higher risk investments, many investors appear willing to hold on to gold as a safety net should conditions sour further on the global front.
Forecasts of modest improvements in home prices and unemployment for 2011 suggest continued and steady interest in gold. This is why some analysts have predicted gold could move as high as $1,800 to $2,000 next year.
Pete Southern is an active trader, chartist and writer for market blogs. He is currently technical analysis contributor and admin at this here blog.
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