Gold is trading over $1,000 an ounce in early morning trading. It’s the third time since March of 2008 that it has reached that level. The first two times $1,000 proved to be a tough ceiling to break through and gold sold off significantly.
This time? Like everybody else, I haven’t the slightest idea. But I think a breakout has a good chance of it sticking this time, even if it has a modest pullback first. If so, $1,000 could become the new floor rather than the ceiling.
Update: Bespoke makes a couple of good points. If gold manages to hang on to today’s gains it will be an all-time closing high. Also, this move above $1,000 is getting a lot less attention than the two previous attempts, which makes this quote appropriate..
They say a watched pot never boils, but once you take your eye off of it…
Indeed.
[...] September 8th I wrote ($1000 gold: Is the third time a charm?) that if gold could clear $1,000 an ounce without attracting enough selling to bring it back below [...]