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Gold Price Eyes Record High

Release Date: 
Thursday, February 24, 2011

GOLD PRICE NEWS - The gold price advanced $5.10 to $1,416.80 per ounce after trading within 1% of the record all-time high of $1,431.50 per ounce. The price of gold gained as oil prices surged through $100 on worries that Libyan leader Muammar Qaddafi will completely shut down his country's oil production.

Risk aversion is rising on Wall Street and across the globe with the outperformance of precious metals relative to the commodity and stock markets testament to this fact. The gold price rally has climbed $84, or 6.2%, this month amid the political turmoil in Libya and the threat that the violence would spread to other nations in Africa and the Middle East.

While the gold price has been strong, the Dow Jones Industrial Average (DJIA) has fallen severely in recent days. The DJIA closed at 12,105.78 yesterday and has experienced its worst two-day performance in over six months. Stock prices were headed for a lower open again Thursday as S&P 500 stock futures fell 4.70 to 1300.80.

Silver and oil have continued to rally alongside the gold price with silver posting a series of 31-year highs before settling at $33.30 per ounce. Gold's sister precious metal reached $34.33 on an intra-day basis earlier this week. Meanwhile, oil hit $100 per barrel for the first time since October 2, 2008.

With February's advance the gold price is on the cusp of recapturing all of its 2011 losses. It closed at $1,420.80 per ounce on Dec 31. The price of gold has moved higher for seven of the last eight trading days.

In addition to the ongoing political and social tensions in the Middle East and Africa, several other catalysts have the potential to influence the gold price over the remainder of the week. The U.S. economic calendar contains several key reports over the next two days. New home sales are set to be released later this morning and fourth quarter 2010 GDP and University of Michigan Consumer Sentiment will be announced on Friday.

If the economic data beats market expectations, the gold price may relinquish a portion of the past days' gains. However, if the reports come in below economists' estimates, the gold price could easily challenge its all-time highs in short order.

Article provided by GoldAlert.com.


This article is independently provided by GoldAlert.com and does not represent the views or opinions of Goldline International, Inc. Although the information in this article has been obtained from sources believed to be reliable, Goldline does not guarĀ­antee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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