Here’s an update on the price of gold from my previous most last June 10. As you can see, the price of gold has skyrocketed over the last couple of months and has yet again registered a new all-time high of $1,265.05 per ounce last June 21. It could aim for a new high in the coming days since its short term uptrend line is still well intact. Though, since its stochastics are still far from the oversold area, it could range for awhile or even retrace back to the support at $1,160.00 or at the long term uptrend line. In any case, the price of gold would likely continue to move higher in the longer term until it breaks its uptrend and reverses.
The increase in the demand for gold in the last several months is primarily due from both price speculation and market fear. It is important to note that gold bares no interest and dividends to its investors but given its intrinsic value, its one of the best assets out there that protects the investors money from inflation. Given the ongoing debt crisis in Europe and now the weak economic data from the world’s biggest economy, the US, fear is slowly making a a comeback. With the Fed’s near zero interest rates and its recent dovish comment regarding the US’s economy and their future policy, it’s no wonder why investors seek gold as a safe haven. Given the uncertainties in the market, both in Europe and in the US, any downbeat developments could send the price of gold higher. Such, though, could benefit the mining industry, specifically the gold miners. The commodity dollar like the Aussie, Kiwi, Loonie, and Swissy could also get some support with the increase in the price of gold.