, IncIn spite of some price instability during the month of December, gold price trends for 2009 suggest the precious metal will continue to be a strong performer moving forward into the coming year. Economic factors are still combining to influence gold prices, and this effect is unlikely to abate during 2010. In addition, price points and current trends for the metal also suggest a continued growth period and opportunity for favorable investment.
Gold topped $1,225 per ounce in early December to reach its all-time high, yet then tumbled several weeks later to a two month low of $1,074 per ounce during a period of over-aggressive profit taking. After the sellers relented, the gold price trend began moving upward again, quickly going back over the $1,100 mark. Most analysts were unimpressed with the downturn, which was seen to be a simple sell-off and quickly reversed.
Gold price trends for 2010 indicate more upward movement. The US dollar continues to be a very weak commodity and has not shown any indication of a rapid reversal. As the US-led wars in Iraq and Afghanistan drag on and the government-entitlement spending continues, no imminent recovery by the dollar is seen. This is important to the gold market as the strength of the dollar historically trends opposite of gold.
Although gold recently reached its all-time high, its adjusted price is only about half of what it was in 1980. Following this trend makes it possible to ignore the current number and looks at the commodity in terms of what the market can bear. This also indicates continued upward movement.
Analyzing gold price trends allows experts to objectively review the value of bullion and gold bars, and then accurately forecast what they will do in the future. Indications are that while its value fluctuated in December 2009, gold prices will continue to rise in 2010.
Stewart Lawson
Senior Staff Writer - GoldPrice.net
