The price of an ounce of gold climbed back over $1,600 today as fresh new year buying supported the precious metal after it bounced off of key technical levels and the US dollar gave up some gains on currency markets.
Latest Gold Futures Price
Gold for February delivery was up $38.60 at $1,605.40 an ounce at the Comex division of the NYMEX. The gold price has traded as high as $1,608.70 and as low as $1,566.80 an ounce today while the spot price was up $36, according to Kitco’s gold index.
It’s All About The Euro
“It’s all about the euro. Gold can’t sustain the rally for just a day.” says Anthony Neglia, president of Tower Trading, who says that higher gold prices have more to prove despite the fact that they bounced off $1,523 an ounce, a key technical level.
Neglia, who is selling rallies and needs to see gold close over $1,625 an ounce to get more optimistic.
A weaker US dollar and stronger euro were helping support higher gold prices. However, those remembering gold’s volatility, that gold closed down 18% from its intra day high of $1,923 might be reluctant to bet big on gold unless it rockets higher.
In 2011 investors saw Gold perform outstandingly in the quiet season in July and August. $2,000 and ounce looked a certainty before the end of the year, but then unusual forces pummelled the gold price and all other global financial markets.
We will have to wait and see what this year brings for gold prices however clues to future direction could come from suggestions that certain African countries will nationalise their mining industries and that the US will again confiscate gold from its citizens in a move that would allow it to suppport a global financial recovery.
And maybe John Soros (one of the world’s leading gold bugs) knows something we don’t – he has been selling gold.
If anyone knows for sure that the price of gold will be in three months, six months or a year, that person could make huge profits. For the rest of us, volatility in the gold market is difficult to out manoeuvre.
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Price of gold moves back over $1600 an ounce on weaker US dollar
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