Gold Prices

I read Gold is being sucked up not by the wealthy countries or its people, but by the rapidly growing middle-class in India and China who clamour for the yellow metal as a ticket to the upper echelons of their respetive societies. I am sure there are other currents in play for its rise. But if you see the prices for the last few weeks, it has actually stayed flat or fallen a bit. While national debts of so many developed countries are at their all-time high, you can only expect that investors will drive the prices of gold higher as a hedge against currency weaknesses. Strangely enough, this is not so.

Some wall street commentators have suggested there is a possibility that Gold could be peaking and they have linked it to the recent Tax cuts (read: Stimulus) in US (still looks iffy) which may drive down unemployment to below 8.5%. I don't know about you, I am buying this argument and I really hope to see Gold prices find its way down by 2011 end to less than $1200 per ounce, less by about 25%.

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