As the new trading week begins, many are eager to see if gold will maintain its position above $1,800 per ounce. The precious yellow metal made a run at $1,800 early last week for the first time in nearly a decade. Of course, the way markets have been behaving as of late, many speculators are rather nervous on whether or not gold can maintain its strength at that level. We’ve seen many occasions in recent months where gold postures itself at or just above a threshold only to see a knee-jerk correction.
The difference this time? Gold has maintained at $1,800 an ounce or just above for several days now. This could be good news that the $1,800 mark will represent the metal’s new floor. Or it could just be another milepost along a colorful, roller coaster-like journey during a time of unprecedented socioeconomic conditions all colliding at a head. And it’s an election year, no less. Hang on tight… And let’s see what the Federal Reserve does regarding economic stimulus. Their actions could very well prove to be the linchpin on the next move gold makes.