September 20, 2010, Los Angeles – Gold bullion prices gained again on Friday reaching a record high for the third time in a week that propelled Gold to its largest weekly gain since May and finishing the week at $1,274 an ounce.
The price of Silver hitched a ride with Gold and broke the $21 an ounce mark early on Friday before retreating to $20.79 an ounce for the week.
Gold bullion prices began the week flat on Monday as the price of Silver rose to its highest level since 2008. Gold was trying desperately to break through $1,260 but not quite accomplishing it.
“If the market takes out the $1,260 level, I think we’re off to the races,” said Ira Epstein of the Linn Group who continued with a prediction, “I’m still looking for $1,300 by year-end.” It looks like he could very well be right. On Tuesday Gold rallied after the Fed announced that it was cutting its growth forecasts and embarking on a program of increased quantitative easing.
Gold prices soared, pushing through resistance and reaching Gold’s biggest one day gain in four months while Silver hit its own 2 1/2 year high.
Gold bullion prices held steady close to all time highs on Wednesday as Silver prices rose to $20.60 an ounce. Now that Gold had pushed through resistance at $1,260 that level then became support.
For the past 18 months Gold had been trading within a very narrow range. Now with Gold moving above that range into new territory with no resistance, how high the gold price can ultimately go is anyone’s guess.
The price of Gold is up 26 percent over the past year in U.S. dollars, 14.9 percent in the Japanese yen, and 42 percent in euros. As a result, confidence in some currencies is diminishing while the price of Gold and Silver keeps moving steadily higher.
One of the key drivers of the rising price of Gold has been the outlook of continued quantitative easing. The Fed has been joined by both the European Central Bank and the Bank of Japan in implementing quantitative easing also known as money printing.
The price of Gold hit record highs again on Thursday for the second time in the week, as investment demand helped to push spot Silver, “poor man’s Gold”, to just below $21 an ounce, its highest level since March 2008 and extending Silver’s winning streak to five days.
Gold is likely to continue its steady ascent in the months to come due to the Fed’s steadfast commitment to fighting deflation.
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