Gold Continues Rise Posted by James Randolph on May 23, 2010
Gold continues rise
May 23 2010 – Gold gained $5.00 dollars an ounce to improve on Friday’s closing price of $1177.00. The rise is yet another sign on how fragile the global economy is in the minds of the investors.
There is a growing anxiety over the financial crisis in the euro-zone, for example Monday May 17, gold was still trading at $1225.00, staying very close to the all-time high of $1226.40 posted on December 3, 2009. And on the second week of May, Gold followed through with a blistering run to set a new all-time high of $1243.10.
The new record eclipsed by $16.70 (1.36%) the previous all-time high of $226.40.
Analysts are of the opinion that gold will continue to rise and are not inclined to hazard a guess when the run will come to an end. As CNN writer Katie Benner puts it: “While there’s plenty of reasons to believe that gold’s dramatic run can’t go on forever, for now it seems a bad time to bet that the rally will soon come to a screeching halt.”
Gold exerts a strong magnetic force on investors during times of economic uncertainty. It is the historical refuge of funds threatened by every sort of economic risk. At present, it is the economic difficulties in Europe that make gold upbeat. And it appears that these difficulties will take more time before they are comfortably solved. Many think that the bailout fund for troubled member-countries of the EU will cause as many problems as it will solve.
An analyst said that “despite the bailout, Greek default is possible, even likely, in the long run.” Aside from Greece, there are Spain, Portugal, Ireland and Italy who are saddled by huge deficit and loans.
So long as these conditions persist, gold will continue its run.
Senior Staff Writer – Certified Gold Exchange