Will gold ever run to $2000 or beyond as was the expectation in 2009? We’re into the fourth month of 2010 but gold has not so far behaved the way it was predicted.
As early as February 2009, months before gold posted its record breaking price of $1104 in December, one respected industry leader fearlessly predicted that gold prices would quadruple in 2010 to $3500 from the then current price of $994. Also early in 2009, another industry leader made a more optimistic prediction — $5,000 per ounce by 2010. Many more had expressed optimism for gold in various, though in much sober, degrees in 2010.
The two-week advance of gold prices that accentuated the end of the first quarter of 2010 was accepted by some as a positive sign “…reflecting the general commodities tone, which is bullish.”
But many were of the opposite sentiment. True, the end of the first quarter ended higher but prices were still in the vicinity of the decade-ending number of $1100. They recalled that prices even dipped to a low $1073.85 in January, an indication of gold’s uneasy footing.
“I’m not bullish about these prices,” reacted an industry leader. “Gold is still trading within a narrow range and prices have been propped up by investor interest, not fundamentals…”
Will gold ever runs as predicted? Could it be that it is too early to make a judgment on gold? The year 2010 is an extension of the 2000-2009 bull run and could be just a brief respite before the run is resumed. It will be recalled that the bull run of the 1970s started slowly from $34.94, reached $50 only two years later before it finally settled at $594.92 in December 1980.
Tags: gold bull