Gold still aiming at $1,000
Gold futures climbed to a 26-year high above $700 an ounce back in May and haven’t traded anywhere near that level since.
When gold traded near $728 in May, “there was a lot of excitement,” prompting scenarios of $1,000 gold prices — even $2,000 and higher, said Steven Jon Kaplan, a senior editor at TrueContrarian.com.
“Since then, a worldwide economic slowdown has begun [and] the anticipated increase in demand for commodities has therefore been reduced,” he said.
Now prices are beginning to show some signs of life again as uncertainty surrounds nuclear activities in North Korea and Iran, and the U.S. accuses Syria of planning to topple the Lebanese government. The U.S. dollar is also losing value and experts bet on further weakness in the currency. Some analysts say the slowdown in economic growth has spurred buying in gold as an alternative investment. (More)