After falling as low as $614.50 on the December contract, gold came back to unchanged levels, which is a very, very strong performance, given the fact that oil is down again today. Oil is down 51 cents at $55.75 a barrel. Silver dipped as low as $12.60 but has bounced back to an 8 cent loss at $12.87. Platinum and palladium also are lower. There is no doubt that gold has been dragged down by the oil price. Other commodities such as copper and grains have also been adversely impacted. I think that the European central banks took advantage of the dip in oil to sell down gold as much as they could. However, there are very strong buyers at these levels, and gold has found support. The $620 level seems to be providing a tremendous amount of support and is unlikely to be breached. In fact, I would not be surprised to see gold bounce to the upside today, as its correction seems to be running out of gas. The weaker CPI and PPI numbers actually will be good for the gold market. The numbers were lower simply because of aggressive drops in energy prices.
Warm weather and an unusual excess of supply coming from the Middle East are the key factors that have pushed oil down. I think that dip will be temporary. In fact, I am absolutely convinced that the excess supply which hit the market two weeks before the elections was deliberately engineered to try to assist the incumbents in their re-election bids. I think that as we move into winter and have an increased need for energy products, that oil will rebound from this overly aggressive sell-off, and that gold will continue to push upward. In my opinion, $700 is still in view by year end, and over $800 is clearly a potential over the course of next year. These forecasts are consistent with those being made by Goldman Sachs, JP Morgan and others. If you would like to receive free articles that quote these major banking sources, call now and we will send that to you at 1-877-341-2646. I think that you have an excellent opportunity to get started with gold today. Take advantage of this opportunity to acquire Swiss 20 franc gold coins on special. Acquire 29 of them and the 30th is free. In addition, some may wish to acquire gold Eagles or the $50 pure gold Buffalo coins. They both have been very attractive choices for many investors. If you would like to acquire the 2007 first strike coins now at today's prices rather than waiting until next year when they are issued, call Goldline at once and they will assist you in acquiring these beautiful coins at today's low price levels. Make this correction work in your favor. Get started today. Call 1-877-341-2646.
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