Well, gold has been seeing new high prices in Europe land and the currency is valued at 1.36 to the dollar. Currently, we are seeing $1060 gold with the dollar index at 80.4. We hit all time gold price around $1200 when the dollar index was around 72. Let's do some math. $1160 X 80.4/72 = $1295. :kewl:
From what I am hearing,europe's "dollar" prices are being adjusted to help fix it,and it is bringing the dollar down,but also holding gold down too.
When the dollar falls gold rises. Gold will also rise due to scarcity and popularity. I don't see much that can push it down other than a large central bank sell off that gets absorbed by the general market, not another central bank. Gold has a long way to go. The cat is out of the bag. I don't think it will appreciate percentage wise like it did in the 70's but I think $2000 is very likely in five years.
A contrarian view, one that I think is doo doo. Our reporter friend Frank Tang, over at Reuters, reports this morning that GFMS opines that: “Gold is near the final phase of its 10-year bull run, but prices could still climb as high as $1,300 an ounce in 2010 driven by higher investment demand.” Philip Klapwijk, the jovial helmsman at GFMS Ltd. feels that “the rise of gold prices is not sustainable because jewelry demand has dropped to less than half of total demand, and record investment buying at some point will fall off.”, Here, read the article yourself.... http://www.kitco.com/ind/nadler/apr142010.html
And more contrarian news. The Financial Times picked up on yesterday’s slew of GFMS-produced annual gold market statistics and found that the London-based consultancy believes that “the current price of gold is unsustainable in the long term and prices will have to fall to stimulate demand in the jewellery sector.” This, as “demand from investors for the yellow metal soared last year, overtaking jewellery demand for the first time since 1980, GFMS said on Wednesday in its annual report on the gold market.” It is difficult to argue that prices could be sustainable” in the long term, he said. “This is a market that has moved out of kilter with its underlying fundamentals.” argued GFMS in its report. Global jewellery production sank 19.8% to a 21-year low last year, and GFMS opined that “prices would need to fall below $900 to revive the fortunes of the jewellery market. At $700 to $800, you’d see really good demand from places like India.” Source, Jon Nadler, Kitco news.
Looks like his information is a little dated: NEW DELHI, April 14 (Reuters) - India's March gold imports jumped nearly six times from a year ago, a trade body head said, as pent-up demand and steady prices since January revived purchases by the world's largest consumer of the precious metal. Gold imports in March rose to 27.7 tonnes against 4.8 tonnes a year ago, Suresh Hundia, president of the Bombay Bullion Association (BBA) said on Wednesday. http://in.reuters.com/article/domesticNews/idINSGE63D08120100414
