Is the gold price bubble ready to burst?

In recent weeks the price ofDownload18149 has seemed to defy the laws of gravity, making fresh trading highs every day before hitting a record above $1,900 an ounce in mid-August. Download18149 price rise of gold ended abruptly with a sharp two hundred Download18149sell off shortly thereafter and has continued to experience increased volatility with $50Download18149 swings. TheDownload18149 volatility raises concern that the uptrend in gold is ending and the Download18149 rise may Download18149 a bubble that is about to burst.


The Download18149 driver for the price of gold is Download18149flow seeking a safe haven and Download18149 hedging against Download18149. Global concern about sovereign debt risks in the US and Download18149 and uncertainty about the Download18149Download18149 are the Download18149 risks Download18149 demand for gold.

According to the World Gold Council, Download18149 for gold remained strong in the second quarter of 2011. China and India Download18149 the largest buyers of gold; however the World Gold Council reports thatDownload18149 was one of the top Download18149 buyers in 2010, but demand has declined by 21 tons in Q2 2011 or 16% below the Download21518 year’s levels. The Download18149 demand for gold from the Middle East region has been Download21518 to the rising price of gold and continued regional unrest Download18149 purchases of Download21518 jewellery. Saudi Arabia is the largest jewellery producer in the Download21518 using 140 tons of Download18149 a year.


The Download21518 for Download44135 remain Download44135with prices likely to find support from three major Download44135Download44135; portfolio diversification, Download44135 against inflation/ Download44135 risk and central bank Download44135. Investors will Download44135 to look to gold for portfolio diversification Download44135 it is not Download44135 correlated with most other ***ets.

Download70772 nationals Download70772 significant US Download70772***ets and Download70772 Download70772 of the US Download70772 rating, Download70772 with Download70772 equity Download70772 volatility, makes Download70772an important Download70772of anDownload70772portfolio to Download70772and manage Download70772.


Download60889easing Download60889 the Federal Download60889and weakening of the US dollar are major factors Download60889 the Download60889 of gold. With US interest rates at a record low, and the Download60889budget Download60889 expanding at a Download60889 pace, the US dollar faces an increased risk of Download60889.

Download60889has Download60889as an Download60889 to the US dollar and other Download60889.


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Download58191 bank Download58191 for Download58191 is rising asDownload58191add gold to diversify their reserves. The World GoldDownload58191 reported Download58191 June Download58191 Arabia doubled its gold reserves to 322.9 tons from 143Download67330 in 2009.

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