The shiny metal gained back last Friday on the back of the weakening dollar and the fact the oil prices inclined to a record high, gold is seen as a hedge against inflation and economic uncertainty, and should oil prices continue to soar the way could be open for gold to reach the $950 mark.
Oil prices soared after JP Morgan expected oil prices would reach the $150 mark per barrel, the Iranian nuclear enrichment program also continues to push oil prices higher, and as a result gold continues to represent one of the safest destinations for investors.
While the fact that the dollar slumped last week after the unemployment rate rose to 5.5%, which prompted investors and analysts into fearing the U.S economy is slipping into a mild recession, and since gold prices are denominated by the dollar, an inverse relationship exits among both.
gold prices inclined last Friday to reach the $900 levels, opening today's trading at $903.65 to hit a low of $898.65 and a high of $904.10, gold now might hit the $907 levels and should gold be able to breach that level, the way will be clear all the way to the $930s levels.
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