Gold has been up and down over the past week. It hit a high of US$992.95 before dropping back down.
Gold is sitting at US$983 after increasing by over $9.65 in the past 24 hours.
It’s up this week due primarily to oil hitting US$110 a barrel and the US dollar hitting record lows against the euro.
Long term we should see decreasing supply affect the price. The Chief Financial Officer of Newmont Mining Group Russell Ball said that the gold mining industry is in for a “1 to 2 percent decline for at least the foreseeable future. I would see that as the next 10 years" – with increasing global demand, that kind of supply reduction will push up prices.
