Last week, Gold was up around $30 to close at $928.40 (continuous contract) for a big weekly gain (+3.42%). And interestingly, dollar was up too which has changed long time inverse relationship between these two—they usually move in the opposite direction. Although this interesting Phenomenon has been continued starting from this year, it won't last long as gold probably will restart its rally while dollar will lose its position sooner or later, especially after the tremendous bailout bill and stimulus package hit the market hard.
For the past two days, gold has retreated a little bit. I think because it has been close to its July 2008 high, so it needs time to overcome the resistance, once the resistance turns to be support, Gold will be very likely to go to $1200 than go down to $700 level again by the end of this year.
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If you watch FirstBusiness on KUSI (probably you would have to record it, since it is now on at 4:00 AM in the morning), several experts have said they expect a retreat of gold to around 600 dollars or even less. This is usually a really good business show, sometimes inteviewing people you never see on the major business channels. Between that at Fareed Zakharia's GPS on 10 AM Sunday CNN, you can get about all the information you need about the economy (good idea also to read the economist).
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