Monday, May 3, 2010

Gold Reaching for $1,200 On Sovereign Debt Crisis

Gold continues to surge upwards as the European sovereign debt crisis takes center stage on the economic scene. Gold prices rose to as high as $1,188.40, a five-month high.

It looks like there's little resistance to reaching $1,200 sometime soon under these conditions, and it'll probably surge up again once it surpasses that marker.

A couple things gold has going for it is it can rise on a weaker euro and rise if the euro strengthens against the dollar.

Investors are now treating gold as the currency of choice, and are trading it as such.

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