Gold Powers Through $800. Hang on for a Bumpy Upwards Ride.

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Market uncertainty on this scale is an excellent breeding ground for gold investment, and what appears to be happening is that many of those institutions which may have shunned gold in the past, are now buying into bullion related stocks and derivatives to give a degree of gold protection status in their portfolios.

After a short hiatus period in the $780s and low $790s, the gold price powered upwards through the psychological resistance level of $800 on Friday without drawing breath, closing the day at around $806-$807. Wall Street stuttered on Thursday and made a small recovery on Friday, as there are still serious overhanging concerns about the subprime mortgage fallout which is continuing to create unease in the financial sector - and many observers also feel there is still a 50:50 chance of the US economy going into reverse next year.

Market uncertainty on this scale is an excellent breeding ground for gold investment, and what appears to be happening is that many of those institutions which may have shunned gold in the past, are now buying into bullion related stocks and derivatives to give a degree of gold protection status in their portfolios.

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