It follows then that as the world economy weakens that people flock back to gold as a safe haven. However lately the price of gold itself has become subject to hot speculation which has driven the price from around $800USD per oz to over $1,200USD per oz.
In fact along with this you can see that there are many more gold-buyers in retail now - who are looking to buy cheap and resell on the market.
On closer inspection at the gold futures market we can see that gold is indeed at a 10 year high along with increased volatility since late last year (longer tails on the chart points).
With increased focus and interest on Gold there is speculation that it may reach 1300. Will it?
Maybe... but that's a big risk to take for an extra 100 bucks! I think a 1300 figure seems unlikely based on the chart above. In fact this chart reminds me of a Kobe Bryant basketball game and a strong fourth period. However, even Kobe needs a break and has form slumps. This run looks way too good to be true.
What's up Jono? http://whatsupjono.blogspot.com
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