Gold has just hit a new contract high of $1,035.00 on a nominal basis.  While this is far short of an inflation-adjusted price compared to the 1980′s highs, this is still a nominal high.  The SPDR Gold Shares (NYSE: GLD) are up 1.7% at $101.55 this morning, which is above that old $108.08 high.  We have been noting an affiliate of ours who has been calling emphatically for higher gold prices.  Yesterday,  in a call that was against the US Dollar and against the S&P 500 Index, the call for gold was for a move above the old power band and a surge to $1,200.00 or possibly even higher.  Gold’s gains are taking silver and copper higher as well.  We have the iShares Silver Trust (NYSE: SLV) up 3.2% at $16.91 in pre-market trading, although its recent high is $17.26.

JON C. OGG
OCTOBER 6, 2009