Are you watching?

They’re doing it again. The metals, that is.

They’re climbing. Some say gold will be $1250 in third quarter. Others say gold could go to $1500. Of course, even the most savvy gold investors cannot predict with any certainty what the market will do.

In the meantime, let’s watch the climb.

Here’s the gold chart for this afternoon after the 4:00 pm close of the New York market.

24 Hour Spot Gold May 11, 2010

 Do you see that “May 11 Last 1231.70” in the upper right of the chart? At $1231.70, gold exceeded its high in December 2009 of $1214.80. That high also happens to be the ten year high for gold.

What about silver?

24 Hour Spot Silver May 11, 2010


Many people think silver is undervalued at the moment, but it, too, is climbing. In the upper right corner, the “May 11 Last 19.330” is a new high for the last year. But, the five and ten year high for silver is $20.79 which occurred in 2008. If the upward trend continues – and many think it should, there will be new silver highs again soon.

The metals respond to turmoil domestically and globally. In this case, the financial issues in the European nations impact the prices of the metals.

Take a look at some of the financial articles for today:

Gold climbs as eurozone debt concerns resurface  This article also shows an interesting quote from the Societe Generale, “Gold has recently proven an ability to escape from its traditionally negative correlation with the greenback as long as bullish drivers emanate from its safe-haven status or its perception as an asset of last resort, features it shares with the US currency.”

Investors Should Expect Higher Commodity Prices, JPMorgan Says A couple of interesting comments here. First, according to JPMorgan Chase, “The bank said it favors crude oil and industrial and precious metals.”  They go on to quote the bank as saying, “Gold will average $1,250 an ounce in the third quarter, then $1,200 in the last three months of the year.”  Now, how can they be so definite in their statement? There are many variables in the market, in the demand and in the global economy that cannot be readily predicted.

Gold Rises, Approaches Record on Haven Demand as Euro Declines This one includes scary comments about European banking, but it also reads, “The metal will trade at $1,250 to $1,350 by the end of the third quarter, said Tobias Merath, head of commodity research in the private banking unit of Credit Suisse Group AG.”

Gold Closes At Record High Amid Doubts Over EU Bailout Very simply, it states, “Investors’ search for a safe bet in times of crisis has pushed the price of bullion up 9% since the start of April, weakening its negative correlation with the dollar.”

Gold A Comfort In Chaotic Times Reflecting many investors, this article comments, “Gold’s role is to be there when investors want to buy a security blanket, and there to sell when they feel more comfortable to venture back into stocks.”

Gold Prices Close at All-Time High starts their article, “Gold prices Tuesday made a new all-time high as investors bought gold as a safety net against worries that Europe’s financial aid plan wouldn’t be enough to save the euro.”

The metals should prove interesting to watch this week as the European financial news continues along with the changes in the political environments in several of the European nations.