Gold surges to $1040 an ounce
Today's announcement that the gold price reached an all-time high of $1040 an ounce has seen more and more investors looking towards this valuable commodity. At this moment in time it would appear that opinion is fairly split between further progress for the gold price and short-term weakness. However, much of the short to medium term performance of the price of gold will depend on the worldwide economy which is very difficult to predict at the best of times!
There is now a growing consensus that while the worldwide economy has improved somewhat over the last six months or so, there is still a real risk of a further decline in 2010. If governments around the world "take their eye off the ball" we could see all of the good work so far undone in just a few months. Gold has historically been a hedge against difficult economic conditions around the world and while some investors would expect short to medium-term profit-taking, due to a potential recovery in the worldwide economy, this should not be taken as gospel.
When you consider the price of gold is currently at an all-time high we are literally in new territory and it is very difficult to say with great certainty how the price will move in the short to medium term.
Share this..
Related stories
Complaints about switching bank account up, but scale of problem is small
The British Bankers' Association (BBA) has sought to reassure consumers after the Financial Ombudsman Service recently disclosed that complaints about moving current accounts from one bank to another have risen by 50 per cent in the last year.The number of complaints about switching current accounts has gone up from 1,200 to 1,800, but the BBA said that this was still only a problem for "a very ti...
Read MoreHedge funds deny blame for banking sector collapse
Hedge funds across the world have today denied being instrumental in the recent collapse of the UK banking sector. There have been rumours and counter rumours of substantial profits from "short selling" which many believe has piled yet more pressure on the sector. However, the hedge funds deny they are to blame instead suggesting that the banking sector has been slow to come forward and clarify ce...
Read MoreGordon Brown suggests a £12 billion European rescue fund
Gordon Brown has been in meeting with his European counterparts most of the day as they look at the options available to halt the meltdown of European economies. While the US deal has finally been voted through there is now an expectation that the rest of world will come together and follow suit. But what is happening at the EU?
First there is confusion as to why Gordon Brown is i...
Number of new homes falls to 50 year low
It has been revealed that the number of new homes being built in the UK has actually fallen to a 50 year low. While it is no surprise to see the number of new homes well down over the last 18 months, a 50 year low is even worse then the most pessimistic had expected. However, this is just where the problems begin!
Not only have we seen the new homes market shattered but we have al...
Is English football on the verge of a meltdown?
Rumours in the football world indicate that Hull City have effectively transfer listed all of their players in the attempt to reduce the company's debt while Portsmouth football club is still in significant turmoil and has again warned staff that January wages could be late for the third time in recent months. So is UK football and English football in particular on the verge of a meltdown? Whil...
Read More