With Gold prices skyrocketing over the last few weeks and the beginning signs of inflation, is gold really in a bubble? Today gold and silver surged to record highs with worries about inflation and euro zone sovereign debt woe troubles.
Gold is hovering around peak levels, exceeding the 1400 level mark.
Silver is also maintaining its gains, having risen to a 30 year peak.
It is said that the demand for precious metals will continue to climb amid low interest rates, the European debt crisis and jitters over the global economic slowdown.
As the US federal reserve starts pumping more money it does not have into the US economy many investors are worried with what could be coming down the pipeline.
What the fed is trying to do is put more money into the economy to serve to depress the price of bonds and also the US dollar.
This acts as a natural catalyst to push the price of gold higher.
Gold and other commodities will most likely continue to react to this news and continue to push up higher in the foreseeable future.
A lot of market commentators are saying gold is in a bubble like condition, but with the volatility seen lately it is easy to shrug off those claims.
Now that Gold has broken through 1500 an ounce it is most likely to see psychological level come in now and egg on keen gold investors.
The 1500 level will be a very important one, so as a trader that will be one to keep your eyes on.