Last week was another astonishing week for the yellow metal, as it ended all of the five sessions on a positive note, with Thursday and Friday chartering new territory to record a new all – time high of $1877. Investors sought refuge from the battered stock markets and flocked into gold in the latter sessions of the week to send gold rocketing up almost $100 in two sessions.
As of this moment, the market is still looking for safe havens, as the sell-offs continue across private equity markets overnight. The strength of gold is the other side of the coin from that. Late Friday saw some consolidation, despite the turmoil in the markets on a bout of profit – taking.
If gold continues as it’s currently doing, it’ll be on track for its largest monthly rise in a year for the month of August. So far, the metal has increased by 32% in 2011 and as long as uncertainty on financial markets remains high, gold should retain its status as a store of value and the price should continue to climb.
The summer doldrums has been mentioned many times in the past, where the precious metals market generally calms down and enters a period of ranging activity. However, in reality the strong season for gold doesn’t start until the end of the month and will continue until May 2012.
