Gold tops $1,000

February 20, 2009

You knew it was going to happen………..again! And one surely knows that in light of TRILLIONS of newly printed money, talk of bank nationalization, and a hawkish Israeli prime minister, that gold must not only touch $1,000 this time but keep climbing. From what I see so far, Obama and his economic advisors have not a clue about how to FIX the economy any more than George Bush and his advisors did.

Gold prices rose above $1,000 an ounce Friday, for the first time in nearly a year, as stocks continued to fall and investors flocked to the metal to preserve capital. Gold for April delivery, which has surpassed February gold in trading volume, was up $21 to $997.50 an ounce in New York after climbing to a high of $1,000.30 earlier in the session.

The last time gold traded at such high levels was in March 2008 amid volatile financial markets and inflation concerns. It rose to an all-time trading high of $1,014.60 an ounce on March 17 and settled at a record $1,003.20 an ounce on March 18. Still, gold remains well below its inflation-adjusted highs touched during a spike nearly 30 years ago. Gold rose to $825.50 on Jan. 21, 1980, which is $2,186.50 in today’s dollars, according to the Minneapolis Fed Calculator.

In the last thirty days gold is up more than $147 an ounce.

Many investors view gold as a safe-haven because precious metals tend to hold value during times of economic duress. As a result, gold tends to rally when stock prices retreat. “With the Dow down to a 6-year low and concerns about financial and economic stability worldwide, $1,000 seems to be the new resistance level,” said Carlos Sanchez, precious metals analyst at CPM Group in New York. Sanchez said gold could push higher towards the close of trading, and that it could continue rising over the next few weeks, “given what’s going on with stocks.”

Gold is up more than 17% for the past month! How many coins do you have?

Written by Ernie · Filed Under Daily Commentary, Gold News