Gold Prices Moving Up Again Posted by James Randolph on May 26, 2010
May 26, 2010 – Gold prices are moving up again this week after last week three day in a row fall to post its recovery past the $1,200.00 resistance point.
Gold finished Tuesday at $1, 203.60 an ounce, a gain of $22.50 (1.9%) from last Thursday’s low of $1,181.10.
Gold’s performance this week is a confident step forward for the metal. Just two weeks ago it made a two-day surge and reached Wednesday its all-time high of $1243.10 an ounce to eclipse the previous all-time high registered on December 3, 2009. Today’s $1,216.10 an ounce is $27.00 (2.2%) lower than the all-time high. It is higher by $112.10 (10.2%) than the decade-ending $1104 and lower by $10.00 (0.8%) than the first quarter record of $1226.10 an ounce.
Eily Ong an investment research manager at the World Gold Council said, “ There has been a recovery despite higher prices. The economic crisis in Europe isn’t going to be resolved in the next month or two. Investors have now strongly moved into gold as somewhere safe to store their money.” Spain has now come under the investor’s radar. Yet another country within the European union to threaten the already fragile financial state. This comes weeks after the Euro-IMF approved loan much awaited by nervous investors who thought it would bring stability to the European markets and currency.
The EU may need to invoke emergency treaty powers under article 122 to halt the contagion, said Julian Callow from Barclays Capital, he also added, “ If not contained, this could result in a ‘Lehman-Style’ tsunami spreading across much of the EU.”
The reality is that we are still in a de-leveraging environment and we don’t know what the full extent of wealth damage will be until the dust settles down.
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Senior Staff Writer – Certified Gold Exchange