Gold Highest Since 1980
Commodity traders have sent Gold higher, after a shaky start to 2008 for the US Dollar. In response to the USD decline, traders have hedged against inflation by trading Gold futures.
Gold reached a high of $852.30, in comparison to a record high of $873 in January 1980. The bullish rally for Gold has continued for a number of years, as the commodity has gained in appeal as a way to offset other volatile investments.
With many experts giving 2008 a shaky economic outlook, expect more hedging to occur with precious metals. This will be a trend to watch in 2008, as it goes against some experts predictions that gold is heading into overbought territory.
Expert Opinion
Frank McGhee, head metals trader at Integrated Brokerage Services LLC in Chicago gives a striking outlook, “crude is making a run for a $100, the dollar is headed lower, and geopolitical tensions are building. It’s very possible gold can get to $1,000 this year.” - Bloomberg
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