Is Gold $1,200 on the Way?

Spread betting and contracts for differences on commodities should consider that gold prices continue to climb every higher. Even yesterday's brief support for the U.S. dollar didn't arrest gold's climb by very much. And gold is again moving higher today.

One of the catalysts today is the fact that India has indicated that it might buy more gold bullion from the International Monetary Fund. The idea that gold could become more scarce, is helping to drive gold prices higher. Of course, a weak dollar is helping as well, reports CNN Money:

"This, and the weaker U.S. dollar, are enough in these markets to push gold further up," said Commerzbank trader Michael Kempinski. "It should be time for a consolidation, but it doesn't come... (we are) just making new highs."

"We see $1,200 earlier than expected," he added.

Since gold often moves inversely to the U.S. dollar, it is little surprise to see gold prices surging upward again as the greenback shows weakness.