The price of gold surged higher Tuesday, as the April contract rose $31.50 to 973.70 an ounce.
According to MarketWatch, gold futures rose to the highest level in seven months, as investors sought a safe haven against economic troubles. The move comes after a 3% gain for the metal last week.
Meanwhile several gold stocks also posted significant gains Tuesday, including King’s Bay Gold (TSX: V.KBG, Stock Forum) which jumped 33%, OceanaGold (TSX: T.OGC, Stock Forum) which climbed 25%, and Ventana Gold (TSX: T.VEN, Stock Forum), up 24%.
On the Bullboards, posters gave their thoughts about gold’s move, including sicnarf on the Goldcorp Bullboard, who said: “even though the stocks are lagging the metal its nice to see this at a six month high[sic].”
Meanwhile, on the Horizons BetaPro S&P TSX Global Gold Bull Plus ETF Bullboard, Wirtz gave some thoughts on where the price of gold may be heading, saying:
Only force holding back physical gold price is commercial paper.
Banks will continue to fail, stimulus cannot save them all, otherwise, a waste of stimulus dollars. US States and global cities on verge of bankruptcy - CDO's gone bad. Depositors have lost faith in holding cash. Physical gold demand climbing higher than short term supply. At $2000 bullion, I may begin to think gold is entering bubble phase. Current price is only the beginning. Mind you, I don't expect gold to be above 1050 USD prior to April[sic].
sleater replied: “wirtz with the amount of money printing we're going to see, even $2,000 will not be bubble territory. IF our fiat money system is to be somehow saved then somewhere down the road gold may get into bubble territory. but that is a long way off and i think well north of $2000
based on the overnight move, you have to wonder if 1050 is in our not-to-distant future[sic]”