Market Participants Anticipating $460 for Gold

Gold has broken a new record again ? the highest level since 1988, above $450 per ounce of spot gold, and many market participants are now anticipating the price of $460 per ounce, and even $500 per ounce. It?s their primary next goal which they aim to reach.

December contract gold futures on the Comex division of U.S.NYMEX climbed $4.40 at $453.70 an ounce, within a range of $449.30 to $454.80 during the trade. February gold surged $4.30 to $455.80.

Tom Boustead, precious metals analyst at
Refco LLC, said fund buying in New York after Thanksgiving hurled gold above $450 amid improved sentiment as the dollar held near a record low versus the euro.

Weak US dollar has been the primary driver behind gold's strength since the beginning of 2002, when gold prices have climbed more than 50% from around $285 an ounce.

The market "has upward momentum until we see something happen in the currencies that would shift sentiment," Boustead said. "Gold looks a little overbought but I don't think that matters until there's a reason to take profits."