For the first time since 1981, gold surpassed the $600/oz mark on the futures markets. Gold futures for May delivery climbed as high as $601.90 overnight in New York and peaked at $600 during teh regular trading session. The strength in gold also helped lift silver futures above $12 an ounce for the first time in more than 22 years. The precious metal has been a hot performer, already up 13% in just the first quarter of this year.
Demand for gold has been on the rise over the last few years as the US dollar has decreased in value against various world currencies and commodities. Not only are more people buying the physical commodity, but the recent release of gold (and silver) exchange traded funds (ETFs) has dramatically increased volume in the futures gold trading.
Geopolitical strife in key international areas like the Middle East (Iran, Iraq) have further increased people's desires to go for the safety of gold and silver. Most experts are now expecting a pullback in gold prices before another upward leg that could see the yellow metal break the $1,000 per ounce mark.
Sections
