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Tuesday, March 25, 2008

Gold Again on the Rebound - Surges over $15 an Ounce

The news last week was commodities were out of favor. How a few days changes everything, as the U.S. dollar is plunging again, consumer confidence and expectations are down, and housing prices continue to fall.

That means we're going to see commodities climb again, with gold leading the way.

Last week gold dropped by the most it had in almost two years, as investors, or rather speculators, fled the sector. The increase of over $15 an ounce today shows it's back in favor, and probably ready for another climb.

"The low consumer confidence number definitely helps gold because it's seen as a safe haven and an alternative asset," said Carlos Sanchez, analyst with CPM Group in New York. "The prospects of the economic situation and tightening of the credit fallout hasn't disappeared, so we'll likely see gold hold at these levels and probably go higher."

Other commodities on the upside today were agriculture, copper, crude oil and silver futures.

April delivery for gold increased to $16.30, to finish at $935 an ounce on the NYMEX.

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