The Price of Gold Hit New Highs

We haven't talked about the price of gold for a while. We followed it as it corrected a bit, watched it flop around waiting for some definite consensus on the part of the buyers and sellers in the gold market. So this week, after the price rose for a while, the price of gold hit a new record. In fact, yesterday it hit another high, settling at $1,431 per ounce. Today it's drifting down a bit as traders take profits.

Does that mean the correction is over? Well, given the fact that a new high is established, we should expect the price to go even higher? When? Ah, that's always tricky to call. And don't forget that nothing goes straight up. But once resistance is broken, you have what's known as a "break out" and can expect even higher prices.

With all this going on, silver also hit new highs. Silver's been on a tear and may be racing up even faster than gold going forward. The thing to remember about silver is that, as opposed to gold, it hasn't bettered its historic high of $50/oz. It's still climbing to beat the old record.

So there you have it. Both gold and silver hit highs for the recent move. The correction appears to be over for now. Will there be another correction? You can bet on it. But probably not for a while. The thing to remember is that the primary trend continues up.

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