Since our last post gold is up to US$933 an ounce due to heightened inflation fears.
Although as this post says it dropped on Friday after the US dollar climbed against the Euro.
Across the board commodities just keep going up. Take a look at this New York Times story about oil production. The story is in-part conjecture about the possibility of further constricting supply – but you get the message. Part of the reason for oil’s huge price increase is on-going concerns around supply pushing up the price. The same thing is happening in other commodities.
Some commentators suggest that the gold price will taper off as the US dollar rebounds. However I’d argue that global demand for gold just doesn’t look like it’s going to taper off anytime soon. Have a look at this article by chief executive of Charteris Treasury Portfolio Managers Ian Williams who looks into the ‘super-cycle’ of commodities and finds gold is a “laggard” with room for further increases.
