By Alan Fein
December gold futures managed to rally to record high prices, finishing the week of October 9, 2009 up $40 at $1047.80. But with the dollar managing a slight uptick Friday, gold futures lost $7.50 per ounce at the close, making one ask if the rally in gold prices are over.
Hedge appeal added to gold prices last week, pushing futures up $41.30 for the week's gain.
Compared to year-ago levels, gold has risen from $712.50 on October 8, 2009 to $1045 in London spot prices this past week. InsideMetals.com, a previous metals newsletter that tracks the price of gold and silver, noted that "During this rise in the bullion price, there were strong fluctuations in the U.S. Dollar."
The SPDR Gold Trust (GLD) now controls over 35,655,560 ounces of gold, InsideMetals noted. "The gold holdings have been steadily increasing since October 2008 and have been recently consolidating as gold prices have been fluctuating between $925 and $1050 per ounce over the last six months," the newsletter states.
Standard Bank precious metals analyst Manqoba Madinane said Friday, "gold has had a rollercoaster ride" this week, mainly due to the dollar.
Gold support and resistance are at $1,040 and $1,058 respectively, Standard Bank's analyst noted.