Futures remain rooted to $800 - Friday 21st December 2007

Late trading before the Christmas break has seen gold futures slip away slightly, but remain high enough to launch another rally in January.

Futures for February delivery experienced a dramatic day on the New York Mercantile Exchange yesterday (December 20th), slipping $2.20 through the day to end at $803.20 per ounce but recovering from an intraday low of $797.70.

January futures contracts also looked resilient this morning (December 21st) trading up $1.10 at $801.20 per ounce, but the fluctuation of gold prices around the $800 mark is typical of the metal's recent behaviour, as it stabilizes after November's dramatic bull run.

Senior trader at Wisdom Financial, Zachary Oxman, said in emailed comments: "More light-volume, choppy-style trading is taking gold down today and I'd expect the market to remain between $780 and $810 through the end of the year."

"The $800 level seems like the place the market wants to close the year at, and I'd watch for a wave of accumulation in the beginning of 2008."

Plucky price levels that have led investors to buy gold also boosted investment in FTSE 100 listed gold companies this week, as many mining firms benefited from high commodity prices.
Goldbug, 21 Dec '07

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