Gold
Gold was down $2.30 to $918.30 per ounce in trading in New York yesterday while silver was up 12 cents to $17.07 per ounce. Gold has rallied in Asian trading and again in trading in London this morning. The London AM Gold Fix at 1030 GMT this morning was at $930.65, £467.24 and €598.57 (from $913.50, £461.60 and €591.15 last Thursday).
Gold has rallied on bargain hunting as gold’s short term overbought status has been corrected and some investors and speculators feel that the sell off is overdone and the metals may have become oversold in the short term. While there may be further consolidation at these levels, gold will likely resume its upward march sooner than expected and we will likely see gold back near (nominal) record highs above $1,030 before the end of April.
Despite the usual misguided and uninformed commentary there is no change in the long term fundamentals driving the gold market. Some of the superficial commentary is by those who came late and are recent converts to the precious metals markets. Many did not forecast or predict gold above $1,000 (nor did they predict oil over $100 or the dollar at $1.60 to the euro) and now they incorrectly assert that the ‘bubble’ is burst. This is a dangerous and deluded assertion especially as we are in the midst and likely the early stages of the worst financial crisis since the Wall Street Crash of 1929 and the Great Depression.
source:by Mark O'Byrne/ rttnews.com
