GOLD Hits $538.80 an Ounce Amid Dollar Worries
How high will the price of GOLD rise before YOU consider buying some?
GOLD finshed the first week of 2006 up 4%, closing at $538.80, amid further worries of the U.S. dollar, which continues its' decline. Today alone, GOLD was up $12.70. The price of GOLD has not seen such consistent price levels as this since March 1981, and it is likely that the year 2006, will go down as THE YEAR OF GOLD.
Analysts have predicted a price of $650 per ounce before the end of 2006, which is likely, given today's news of the death of Israeli Prime Minister Ariel Sharon. The explosive Middle East political situation should help push GOLD upward, just as it concurrently pushes the value of the U.S. dollar downward.
Adding to the dollars volatility was the announcement yesterday by Red China that they are going to be moving out of the dollar, and presumably into the Euro or increase their holdings in precious metals. Either of these two moves is going to have dire consequences for the value of the dollar, and the U.S. economy as a whole.
© 2006 Kentroversy Papers
All rights reserved. Used with permission.
The following source was used in the creation of this Kentroversy Paper . . .
Gold Ends Atop $541, Up Over 4% on Week - China to diversify foreign-exchange holdings (January 6, 2005 4:18pm)
KITCO: Live Market Quotes - Precious Metals
Chinese Demand For Gold
Federal Reserve Bank