Gold continues on its upward trend, with periodic drops in price. This week gold reached a new high of over $1900 per ounce, followed by a $200 drop in price. I can`t say I`m surprised by that, since every time prices soar there will be traders and speculators rushing to sell off their gold to take quick profits, and then possibly buy gold once again after the prices have fallen temporarily.
Whenever the price falls, some people will claim that the bullmarket is over and that the gold bubble has burst. But all you need to do is look at the current economic climate to know that gold is still going to be sought out as a safe haven, despite daily fluctuations due to trading. Uncertainty over Europe`s debt troubles remains, and this week`s unemployment figures in the US also resparked economic worries (well, they never really went away) and the gold price has begun approaching its all-time highs again.
You can read more about the differing interpretations of the $200 drop in the gold price in this article on Forbes.com
http://www.forbes.com/sites/afontevecchia/2011/08/25/gold-falls-10-due-to-over-extension-bullish-fundamentals-still-in-place/?feed=rss_home
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