Gold Takes Just One 2008 Trading Day to Set New Record

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Only one full working day back. . .and gold has already set a new record price level, at one point so far reaching over $860 and the consensus is that it is likely to set ever new highs as the year moves on with virtually all the factors driving gold upwards remaining in place or strengthening.

Well it must have been a really good Christmas for the gold traders. Only one full working day back. . .and gold has already set a new record price level, at one point so far reaching over $860 and the consensus is that it is likely to set ever new highs as the year moves on with virtually all the factors driving gold upwards remaining in place or strengthening. . .

But, as was pointed out in Jeremy Grant's article on Gold Fever published here yesterday, this time there hasn't been the euphoria experienced last time gold reached such heady levels with people rushing to sell any scraps of gold they owned. Again as Grant pointed out, the current record level is nowhere near its predecessor high in real terms and still needs to nearly triple to reach that so there is the feeling out there that the current run up in price has a considerable way to go yet.

Again, as Mineweb pointed out just after Christmas, opposition leader Benazir Bhutto's assassination in Pakistan raises huge political worries as instability in a Muslim nuclear power where a significant sector of the population is supportive of Al Qaeda and/or the Taleban, and the possibilities that engenders in terms of Western nation security, perhaps makes the world an even more dangerous place in which to live. . .So what's in store? Probably substantial gold price volatility. $900 gold is surely not far away and $1,000 gold could be breached this year - indeed the consensus of gold follower is that it will be. $1,000 may form quite a resistance barrier though, although gold's rapid surge through some other barriers seen as major resistance levels in the past year could be a pointer here. This has usually been followed by periods of profit taking bringing the price down a step, before consolidating and surging up again.

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