Friday, Decemeber 3, 2010   Commodities & Futures-    By: Mark O'byrne   

Gold is higher in all currencies again this morning and is heading for a second weekly gain in dollars (and other major currencies), as China's imports surged, geopolitical risk in the Korean peninsula remains elevated and uncertainty about the euro, currencies and paper assets in general is leading to continued safe haven demand.

Gold has consolidated at these levels and there appears to be strong support at $1,320/oz. Resistance is at $1,400/oz and the nominal high of $1,424.60/oz. It is important to remember that gold remains more than 30% below its inflation adjusted high of $2,300/oz

The level of ignorance regarding the fundamentals driving the gold market remains very high. So called experts continue to say that gold and silver are risky, overvalued and or a bubble based on selective information and assumptions. This is despite gold remaining well below the inflation adjusted high of 1980 and silver at under $30/oz remaining some 33% below its nominal price high of $50/oz 30 years ago.

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