Gold Prices Whipsaw Higher |
| TheStreet.com - Feb 4, 2011 |
Gold prices drastically reversed directions and popped higher Thursday as technical buying and the fear trade came back to life.
Gold for April delivery soared $20.90 to $1,353 an ounce at the Comex division of the New York Mercantile Exchange, after a pretty uneventful morning. The gold price today has traded as high as $1,356.60 and as low as $1,325.30.
The spot gold price was popping $17.10, according to Kitco's gold index. Gold's sudden reversal left analysts scrambling for an explanation. Jon Nadler, senior analyst at Kitco.com, points to the "Middle East unrest excuse" as reports indicated that at least 6 people were killed as pro-Mubarak supporters clashed with anti-government protesters. Chaos and violence can make gold appealing as a safe haven asset.
With gold up double digits so quickly, the finger also points to large hedge fund buyers and buy orders, meaning that traders commit to buying gold at a certain price and once the rally hit they were forced to pull the trigger.
Read Full Article from TheStreet.com
- Posted: 2011-02-03 22:52:30
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