U.S. gold hits record high of $1,043.20 an ounce
U.S. gold futures rose to an all-time high of $1,043.20 an ounce on Tuesday as a weakened U.S. currency prompted investors to buy gold as a hedge against dollar-denominated portfolios.
The recent rise in gold prices above the $1000 mark has sparked interest in the yellow metal once again, but this is in fact the third time in less that two years that gold prices have reached four figures, with the previous two occasions preceding large drops in the gold price.
So is it a case of third time lucky this time for gold?
We certainly think so, particularly as we watch gold tick up in Hong Kong to flirt with $1020. However $1033 is the critical level that we are watching intently, as we believe a break above this level will confirm that gold is indeed in a major rally and not just another failed attempt at maintaining a four figure price.
Emphasis must be placed on the importance of gold breaking the $1000 level, and maintaining it, this time around. If it fails again this will jeopardize future attempts, firstly as bulls will become nervous as soon as it ever comes close again, and secondly traders will jump on gold as a textbook short. This could put gold’s bull run back a year or two.
Thankfully however, we do not see this happening. We see gold breaking $1033 very soon, and then running to $1200 over the coming months.
Hold tight, its going to be wild ride on the way though.
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