Gold closed up today as investors seem confused as to which way gold is heading and whether the gold commodity price is headed upwards, downwards, or sideways. Yesterday gold closed at $ 963 a troy ounce and today it closed at $ 966. Gold is traded in units of 100 ounces and trades under the base symbol GGC. Today’s gain, however, was not enough o offset yesterday’s loss of $ 20 an ounce. To recap, gold started the week at $ 978 then rose to $ 983 and then tumbled to $ 963 followed by a slight crawl to $ 966. This means in four days of trading gold has yielded a loss of $ 12 per troy ounce. Will this trend continue? It is hard to say.
Some investors are shocked and saddened at this loss which comes just after recent news accounts that China is purchasing large quantities of gold as a hedge against its fears that the US dollar is going to continue to decline in value.
Moreover, there is talk in the International financial markets about moving to a currency other than the US dollar as a basis of valuing and trading commodities. Some have suggested gold. Thus, there are high expectations that gold is about to take off in an upward pricing trend. Hence the confusion and disappointment with today’s price news.
However, one commentator remains bullish on gold and is predicting that gold will reach a high of $ 7,000 per ounce. I do not see any others hopping on that bandwagon. At least not yet. Most investors seem almost paralyzed by this week’s gold activities and do not know what to make of the price decline. It appears most investors still have a wait and see attitude as to which way the gold commodity price will go.