I had an interesting morning reading through one of my favorite gold-related blogs, not necessarily a gold prospecting read, but more centered on owning gold as a hedge. With gold breaking above $1400/oz this morning, dhkenrick of OwningGold.com espoused a common quandary of many gold owners when prices soar to new levels – will gold prices continue to climb, or is this the top?
I have been wondering whether, or when the price of gold would break the $1,400 barrier.
Yes, there is a “barrier”. Breaking that round number takes some doing. Perhaps it shouldn’t be any different from breaking the $1,397 barrier – but it is.
Sentiment and psychology always play a significant part in setting the price of gold.
Will the price remain over $1,400?
That remains to be seen. Round figures also tend to trigger selling sprees, which could cause the price to fall again soon.
But now the barrier has been broken, even if we see some sell-off and a fall in price, it will now be much easier to regain this level and keep rising.
Well, the barrier has definitely been broken and the psychology of it aside for the moment, there is other news today that may lend the current gold rally beefier legs – the World Bank Chief, Robert Zoellick.
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Don Gill
ProspectorsPlus.com
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