Gold Futures Have Been Holding Steady

Gold futures have been holding steady as the end of 2006 approaches, with a continued weak US Dollar and Central Bank diversification providing support for the market. Commodity funds have been among the biggest buyers of Gold futures in 2006, controlling a net-position of over 69,000 contracts, as of the most recent Commitment of Traders report. Normally, weak Crude Oil prices would drag Gold prices lower, however, yesterday's sharp sell-off in the energy markets was ignored by metals traders, with Gold posting solid gains after the long Christmas holiday. With 2007 rapidly approaching, traders should focus on energy prices, the US Dollar, and the base metals sector to determine if the Gold market is heading to new all-time high prices in the coming year. Read More...