Tuesday, June 29, 2010

Gold Prices Should be Volatile Over Next Week

With the end of the six-month trading period here, and a long weekend ahead for American traders with 4th of July coming up, it looks like a period of volatility for gold prices are on hand, as they have been since records were broken two weeks ago.

Gold prices today did allow for a little momentum, as on the Comex division of the New York Mercantile Exchange, gold for August delivery settled at $1,242.30 an ounce, a gain of $3.80.

Highs for gold prices on Tuesday were $1,246, while swinging a low as $1,230. Spot gold also finished higher by over $2 an ounce.

Some traders may sell their position in gold because of weak equity markets as the end of June arrives, and that could put downward pressure on gold for the short term.

Depending on how traders interpret the market, they could do the opposite as well, investing in some gold to add it to their portfolio to begin the second half.

There is a lot of uncertainty going forward, and that adds to the volatility of gold prices, but also to its attraction.

It's a nod toward gold that it has been holding up so well since the sell off after gold records were set the week before last, and that seems to bode well for the second half of the year, which could be tougher on the first for equities, and investors continue to look for a safe haven for their money.

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