Gold Prices Back Above $1325
The gold prices back above $1325 are the result from unrest in the Middle East, especially Egypt. Gold has always been the safe sanctuary for investors during recessions and troubled time, like the world is now facing. You can always tell how comfortable or uneasy the market place is with the price of gold and its activity on its market.
The current spot Gold Prices at the close of January 31, 2011 was at $1,333.00. This is a decline from a high of $1,426 less than 2 months ago, but investors are not leaving the safety and security of this precious metals market for any riskier investment at this time because of all the uncertainty.
First it was Tunisia, now Egypt with revolutions toppling governments. There is talk of other regime changes that are very unsettling for all the markets. This instability will see gold prices maintain their current level or increase until the political situation settles down and investors know what to expect.
Gold did see its first monthly decline in the last six months due to positive economic news from the US along with the Euro financial situation stabilizing, but by maintaining its price near records level still send the message of uncertainty in the market place.
The main concern to the world markets when it is related to Egypt is not oil but the Suez Canal. With instability in Egypt the daily operations of this busy sea-lane is uncertain. The reason for concern is that 7.5% of all the worlds’ goods are transported thru this vital waterway. If there was a disruption in vessel travel thru this waterway, it would have a negative effect on the world’s market place.
Until stability returns to the region, expect gold prices back above $1325 and to stay there.
Tags: 2011, Egypt, gold, gold prices, investing, money, spot gold prices, Suez Canal
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