By Seeking Alpha,
December 3, 2009 at 1:26 PM
Mark O'Byrne submits: Gold Gold reached a new nominal high overnight of $1,226/oz. Gold is currently trading at $1,218.40/oz and in euro and sterling terms, gold is trading at €807/oz and £732/oz respectively. Gold may be overbought in the short term but in bull markets with strong fundamentals, markets can remain overbought for long periods of time as was seen in the 1970s. There are many institutional and central bank buyers on the sidelines at these prices but they will provide strong support with many waiting to buy on the dips. The recent sanguine reaction of markets to the Dubai default and buoyancy in equity markets has led to leveraged players returning to the futures market and this in conjunction with the strong physical demand from more risk averse investors and central banks means that there will likely be more diversification into gold in 2010. »