Gold Price ?

The price of gold is driven by fear not fundamentals, if we see increased forclosures, more derivative problems, or more banks losses then gold should go higher.

If you want to keep tracking cool prices I suggest looking at the correlation between markets. If the stock market is going down and it is well correlated with bonds and currencies then gold is more likely to go up

Gold down today when oil was up, oil is more the one breaking trend than gold. judging by the dollar strength it seems dollar should drift lower as we move ahead

Andrew I have to disagree, gold does what it does absolutely on fundamentals. If you study you will come to the same conclusion.

Alex, my first post was of course somewhat of a hyperbole but I think you are a tad mistaken if you think fundamentals are all that drive the gold market. I have studied and that is how I came up with my conclusions.

Gold is a hedge against inflation and it works best when the economy is experiencing inflation.Infation is about increased money supply and we are seeing billions of dollars being poured into the markets by central banks around the world.
http://mises.org/story/908
All this paper money will chase wheat as people try to eat,oil as they seek gas to drive their cars and such but as I far as I know Helicopter Ben hasn't figured ways to print hard assets.So we are going to see rising prices of everything in dollar terms because there is just more dollars chasing a fixed quantity of commodities.Gold is money has been will be and in terms of gold oil prices haven't gone up.Gold still buys the same amount of crude oil as it did years ago.
http://s.wsj.net/public/resources/images/ED-AG911_1oilgo_20080103221647.gif

As more and more figure out that their purchasing power is being eroded,they will flock to gold.But it would be a very wild ride.Even in the 1970 there were two years when gold went down close to 58 % if I remember correctly,stayed there for sometime and then went up multiple times over.Remember there were no ETF,fickle hedge funds then.Add this to the mix and we are looking at extreme "volatility" as financial folks like to call "Oh My God there goes my savings " scenarios.But for the informed person it also offers unprecedented opportunities.The gold bull market has a long long way to go -I don't see any mania here.
http://www.zealllc.com/2004/au3stage.htm

The reason why I took so much time is that I believe in the premise of the Daily Reckoning editor that gold is the trade of the decade.I believe in Buffett's principle of concentrated investments,so I am 90% long gold in my real life portfolio.10% cash as opportunity fund.But that is because in India where I am from no other commodity etf are available.In the US the best investment is Rogers commodity index fund.Invest and forget for at least 5 years.The returns are going to be huge.The reason I said this is to convey that I am actually putting my money where my mouth is :).And no I am no gold bug,I would have no hesitation to sell gold and buy undervalued stocks 10 years from now when hopefully Barron would come out with another "death of equities" headline.

Further reading
www.dailyreckoning.au
www.financialsense.com
Hope this helps.Happy investing !

gold has a new support, pretty much unknown but its very unlikly we ever see sub 750 again.

D porter has a good point and I think he may be right regarding the future price of gold

it is all a matter of the fed and other central banks decision to continue printing money.

Gold is an alternative currency and will continue to be in demand as we deleverage and as volitility returns

I dont think that we will see a spike in gold unless the equity markets make new lows

as long as the dollar keeps getting stronger gold will keep getting weaker, with the G7 meeting starting today it will be interesting to see what the news coming out of that meeting is, I expect it to mean a strong move for gold either way.

You all missed the boat. Remember years back when the world dropped gold and went the American dollar. I invested
30k when no one was looking at gold and just sat back and watched. My investment is up over 600%. With a new administration on the horizon I would keep out of gold till a draw back.

gold price alone with other commodities is expected to keep raising in the following year. the reason behind this is because the global econmoy is experiencing inflationary growth at the moment and will last behind 2009 according to current news and many economists' voice. however i personlly think the gold price will relatively stable comparing to other commodities due to its role in the economy. it is a subsitution of dollor, and the us economy is still the world most stable and strongest, therefore we expect to the dollor stay within the line, hence the gold price .

predicting the future is somewhat difficult without having a crystal ball -- or some of those smelly entrails. however, it is quite possible to define, identify, and capitalise upon trends in motion. in this line of thought, gold is a buy at 940, but not until.

personal thoughts -- there seems to be too much company on the side of the gold bulls. so many folks are betting upon the demise of western civilisation and its system. as someone who has literally "been around the world" so many times that i am permanently dizzy, i do not forsee any viable alternatives to the primacy of the west, at this time. the system may be substantially revised, but the familiar pipers are likely to be the ones calling the tunes.

Technically speaking gold is forming a nice triangle formation, it will be good to see how this breaks out

If gold gets down to 900 or even 850 just keep adding more, fundamentally there is built in support for a long time to come

you might be better off holding gold in euros in order to mitigate the risk

once the dollar begins to rebound in price gold will drop like a rock, this will be exacerbated by the fact that retail investors will start jumping out of commodity etfs