Posted by Adam King on December 29, 2008
December 29, 2008 – Tension rising in the Middle East is causing more and more investors to demand gold bullion and certified gold as a safe haven during these uncertain times. As Israel continues to place tanks near the Gaza Strip and activating military reservists for a “war against Hamos,” precious metals continued to spike and any further tension could cause dramatic increases in gold prices. Middle East investors are the second biggest buyers of precious metals in the world, led by American investors and both are scrambling to get their hands on as much metal as they can right now.
Currently, the gold spot price is $879, this is a $10.40 increase for the day, a $73 increase for the month and a $53.90 increase for the year. Today’s high was the highest it has been in 11 weeks and it looks like we should be seeing the eighth straight annual increase in gold price this coming New Years Day. My projection is that $950-$1000 per ounce is extremely possible and we could be seeing that sooner than we expect.
As commodities continue to fluctuate, currencies have been hit hard and everything from the United States Dollar to the UK Pound to the Euro and Russian Ruble continue to plummet with no end in near sight. It’s historically proven that when currencies drop, commodities increase. That is exactly what we are seeing now and we may continue seeing this for quite a while. Have a beautiful day and a great holiday season.
Senior Staff Writer – Certified Gold Exchange
US Gold Market