It wasn't all that long ago, in early December in fact, that the market pundits were sure about all but the upcoming demise of gold. We posted a story link from Yahoo Finance that talked about the reasons to stay away from gold
, and in a comment wondered if this was a contrary indicator. Gold was on a downward trajectory and went below $1,200 and ounce but it has seen an upsurge in the new year. The price of silver has also followed a similar pattern.
Now the question remains if this short term rally will pull the price through whatever the resistance levels may be or if this is a "dead cat" bounce and we end up lower. There are still a few views that gold has to go below $1,000, most likely hit the $900 levels before it heads to higher highs. Word is that gold ETF (exchange traded fund) selling continues while physical purchases, especially in India and China keep hitting new highs.