Thursday December 03, 2009

COMEX gold futures prices hit record over $1227, USD weakness trumps Dubai debt payment fears

reuters.com :

Gold prices hit record highs over $1,227 on 3 Dec 2009 as the precious metal continued to attract investors looking for an alternative to the dollar. Gold prices have risen by more than 7% since touching a low of $1,136.80 Friday on fears of a possible Dubai debt default. Analysts say worries about Dubai's debt payment problems still linger, though pushed to the backburner with USD weakness coming to the fore. Spot gold prices rose as high as $1,226.10. COMEX gold futures for Feb 2009 delivery touched an all-time record high of $1,227.50. Gold has risen 25% in the last 3 months.

Investors were also taking heart from moves by central banks to buy gold to diversify reserves, including India's purchase of about half the IMF's planned sales of 403.3 tonnes of gold. Researchers with China's ruling Communist Party have said the country should buy more gold to boost its holdings.

- I'm continuing to look out for a top after having exited some of both my personal *and* my fund's gold positions. Not to worry if gold prices do break the current $1227 record high and go on to $1300, we do still continue to hold precious metal-related funds and stocks for the longer haul. We're not into gold or oil futures trading though, just doing normal stock- and ETF-style transactions.

Like I say time and again, times like these when things go vertical make me nervous - and gold has been going nearly vertical for the past month or so - or at least what looks very much like a 70- to 80-degree angle. There are absolutely no historical resistance levels to talk about since we are pretty much well into unchartered territory. The contrarian community has been talking about *possible* resistance at $1200 since months back and lately there have been mumblings about a $1300 resistance and the crawl-out-on-a-limb folks say $1500. Myself, I'm playing contrarian to the contrarians and eyeing suppport levels instead. We'll see.

See also :

1. NYMEX crude oil prices hit $80, gold prices trade near $1070.80 record high
2. COMEX gold futures price hits new record high over $1111 as Dow rises 200 points
3. COMEX gold futures trading over $1152 as prices hit new record highs
4. Dubai debt default looms on $80 billion of loans, requests debt payment freeze
5. COMEX gold futures fall from $1195 record as commodity prices slump on Dubai debt default fears

(2009-12-03 23:30:37 SGT) [Biz] Permalink

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