Gold is currently sitting at US$879 an ounce.
There has been some speculation as to where the gold is going in the near future. This is what John Reade, the head of metals strategy at UBS AG, says ``From a short-term perspective, gold is neutrally positioned at $890" He notes that is in the middle of its recent range of $850 to $930. "The metal is searching for fresh direction with crude and the dollar off their recent highs, but still-present talk of inflation rising again supporting the metal."
This article takes a look at whether the current price movements are part of a commodities bubble or correction.
And this article quotes South Africa's Chamber of Mines who said on Tuesday that the country's gold production fell 15.6 percent to 52,228 kg in the first quarter of 2008compared to the fourth quarter of last year. This kind of reduction in supply should continue to give strong price support.
